ONE in four property transactions will involve lending from the so-called Bank of Mum and Dad this year.

The amount of money lent by parents for property transactions makes the Bank of Mum and Dad the equivalent of a £5.7 million mortgage lender in 2018.

That's according to Legal & General which claims that this year parents will enable 316,000 loved ones to buy a home. This is up from 298,300 in 2017.

The value of property purchases supported by the Bank of Mum and Dad will rise to £81.7 billion in 2018, a five per cent increase since 2016.

However the research from Legal & General also found that the sums being lent by parents is getting small, declining from £21,600 in 2017 to £18,000 in 2018.

Nigel Wilson, group chief executive of L&G said: "The Bank of Mum and Dad remains a prime mover in the UK housing market, and will lend the best part of £6 billion to buyers this year, with over 315,000 transactions being underpinned by parental lending.

"However, it's clear that households are feeling the pinch, as BoMaD contributions have reduced by an average of 17 per cent."

He went on to say that the increasing reliance by buyers on their parents, coupled with parents facing their own financial pressures will contribute to the country's looming housing crisis: "The fact that in 2018, one in four housing transactions will be dependent on the Bank of Mum and Dad, while hard pressed parents are finding it more difficult to provide the funds to help their family with deposits, will further exacerbate the UK's housing crisis.

"We need more homes for the young, old and families alike. Legal & General is playing its part by announcing an initiative to deliver thousands of new affordable homes."