By . Becky Barrow . PUBLISHED: . 17:39 EST, 5 June 2013 . | . UPDATED: . 18:09 EST, 5 June 2013 . The ‘Bank of Mum and Dad’ is being crippled as soaring numbers of children are reliant on their parents to buy their first home, the Council of Mortgage Lenders warned yesterday. Millions of parents are ‘unable or unwilling’ to help their children, a crisis being made worse by banks demanding massive deposits, it said. In a hard-hitting report, the CML said the demand for a deposit is a major worry for parents, many of whom simply cannot afford to help out their children. Cash in hand: Millions of parents are 'unable or unwilling' to help their children - a crisis being made worse by banks demanding massive deposits, the CMT warned. A still from the BBC show Bank of Mum & Dad is pictured . The report said: ‘There are material limits to how much parental help can deliver, both in terms of how many parents are in a position where they can offer help and the depth of their pockets.’ In 2006, shortly before the credit crunch struck, 67 per cent of first-time buyers managed to get onto the housing ladder without any financial assistance from their parents. Last year, the number had collapsed to just 36 per cent. In an extraordinary change underway in Britain, this means the majority of young people are reliant on their parents to buy their first home. Many parents can afford to lend a small amount of money, but the record deposits required by banks or building societies to get the cheapest loans means that far more money is needed. The size of the average deposit put down by a first-time buyer has jumped, as the number of ‘unassisted’ first-time buyers has collapsed. In 2006, the average deposit put down by a first-time buyer was 10 per cent. Last year, it was 20 per cent. In London, where the average asking price is £510,000, this is equal to £102,000. The CML said: ‘Many parents, or other . family members or friends, may be unable or unwilling to help at all, or . not able to help as much as would be needed.’ Big purchase: The majority of young people in Britain are reliant on their parents to buy their first home . Its research reveals ‘an increased reliance on the Bank of Mum and Dad’ in recent years, which has also - not coincidentally - gone ‘hand in hand with sharply reduced numbers.’ In 2006, there were 402,800 first-time buyers. Last year, there were just 217,800. Duncan Stott, from the first-time buyer campaign group Priced Out, said: ‘With first-time buyer numbers still far below the levels seen a decade ago, we must seriously question whether house prices are placing too greater burden on young adults.’ 'There are material limits to how much parental help can deliver, both in terms of how many parents are in a position where they can offer help and the depth of their pockets' Council of Mortgage Lenders report . At a conference in London last month, Planning Minister Nick Boles said it is wrong that couples are beginning to feel it is ‘an unrealistic ambition’ to buy a house. He said: ‘We can’t surely believe that it is right that we are saying to two partners who are both working that it is an unrealistic ambition for them to want to be able to own a little house with a bit of garden for when they have a couple of kids. ‘It was a reasonable ambition for most people for most of the last 40 years. So are we really willing to say that we are going to go backwards? Homeownership will become something that only people either on very high salaries or with wealthy parents are able to access. I don’t think we should.’ Around three million parents still have their grown-up children living with them at home, according to a recent report by Saga, the old age experts. The average age of the children, dubbed ‘failed fledglings’, is 27 although some are over the age of 41, with many forced to live at home while they save for a deposit. The Government’s ‘Help to Buy’ scheme is aimed at helping young people to buy, by allowing them to put down a deposit of only five per cent.
Millions of parents 'unable or unwilling' to help their children, CML says .
Deposit demand is major worry for parents and many can't help children .
In 2006, 67% of first-time buyers got on housing ladder without financial help from parents - but by last year this figure had collapsed to just 36% .
By . Becky Barrow . PUBLISHED: . 17:39 EST, 5 June 2013 . | . UPDATED: . 18:09 EST, 5 June 2013 . The ‘Bank of Mum and Dad’ is being crippled as soaring numbers of children are reliant on their parents to buy their first home, the Council of Mortgage Lenders warned yesterday. Millions of parents are ‘unable or unwilling’ to help their children, a crisis being made worse by banks demanding massive deposits, it said. In a hard-hitting report, the CML said the demand for a deposit is a major worry for parents, many of whom simply cannot afford to help out their children. Cash in hand: Millions of parents are 'unable or unwilling' to help their children - a crisis being made worse by banks demanding massive deposits, the CMT warned. A still from the BBC show Bank of Mum & Dad is pictured . The report said: ‘There are material limits to how much parental help can deliver, both in terms of how many parents are in a position where they can offer help and the depth of their pockets.’ In 2006, shortly before the credit crunch struck, 67 per cent of first-time buyers managed to get onto the housing ladder without any financial assistance from their parents. Last year, the number had collapsed to just 36 per cent. In an extraordinary change underway in Britain, this means the majority of young people are reliant on their parents to buy their first home. Many parents can afford to lend a small amount of money, but the record deposits required by banks or building societies to get the cheapest loans means that far more money is needed. The size of the average deposit put down by a first-time buyer has jumped, as the number of ‘unassisted’ first-time buyers has collapsed. In 2006, the average deposit put down by a first-time buyer was 10 per cent. Last year, it was 20 per cent. In London, where the average asking price is £510,000, this is equal to £102,000. The CML said: ‘Many parents, or other . family members or friends, may be unable or unwilling to help at all, or . not able to help as much as would be needed.’ Big purchase: The majority of young people in Britain are reliant on their parents to buy their first home . Its research reveals ‘an increased reliance on the Bank of Mum and Dad’ in recent years, which has also - not coincidentally - gone ‘hand in hand with sharply reduced numbers.’ In 2006, there were 402,800 first-time buyers. Last year, there were just 217,800. Duncan Stott, from the first-time buyer campaign group Priced Out, said: ‘With first-time buyer numbers still far below the levels seen a decade ago, we must seriously question whether house prices are placing too greater burden on young adults.’ 'There are material limits to how much parental help can deliver, both in terms of how many parents are in a position where they can offer help and the depth of their pockets' Council of Mortgage Lenders report . At a conference in London last month, Planning Minister Nick Boles said it is wrong that couples are beginning to feel it is ‘an unrealistic ambition’ to buy a house. He said: ‘We can’t surely believe that it is right that we are saying to two partners who are both working that it is an unrealistic ambition for them to want to be able to own a little house with a bit of garden for when they have a couple of kids. ‘It was a reasonable ambition for most people for most of the last 40 years. So are we really willing to say that we are going to go backwards? Homeownership will become something that only people either on very high salaries or with wealthy parents are able to access. I don’t think we should.’ Around three million parents still have their grown-up children living with them at home, according to a recent report by Saga, the old age experts. The average age of the children, dubbed ‘failed fledglings’, is 27 although some are over the age of 41, with many forced to live at home while they save for a deposit. The Government’s ‘Help to Buy’ scheme is aimed at helping young people to buy, by allowing them to put down a deposit of only five per cent.
a deposit is a major worry for parents, many of 'unable or unwilling' to help their children - a the housing ladder without any financial number had collapsed to just 36 per cent. In an first-time buyers has collapsed. In 2006, the