The majority (82%) of first-time buyers are struggling to raise a deposit, despite reports showing a drop in house prices, according to Saffron Building Society.

The data also shows that 83% of those currently house hunting had been offered no financial support from mum and dad.

Saffron noted that the research arrives as lenders begin to return to high loan-to-value (LTV) lending, following product removals in 2020.

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The survey was commissioned by Saffron Building Society between 15 and 18 January 2021, via FindOutNow; it collected data from 500 first-time buyers in the UK.

John Penberthy-Smith, chief commercial officer of Saffron Building Society, said: “Mum and dad have always been a reliable source of funding when buying your first home.

“We were initially surprised that a large number of first-time buyers had received no financial support.

“However, with many workers furloughed, the country in a recession, and ongoing fear over more job losses, it is understandable that parents may want to sit on their nest egg savings for their own financial security.

“We launched two first-time buyer products at the end of last year, which have been very popular but have since reviewed those products.

“From today, we are delighted to offer a free valuation and have removed the arrangement fee, reducing the upfront costs to the buyer.

“Saffron has always accepted gifted deposits across all our mortgage products. It must be a close family member, but that includes nan and grandad – who we have identified in the past as a common source of first-home financial support.”