"Only five per cent of parents were able to provide the full amount required for a deposit and so FTBs are still having to work hard to make their dream a reality."
The research from Post Office Money found that the parents of millennials have an average financial wealth of £52,746 and can afford to use a third of this towards their child's deposit.
41% of parents are not currently in a position to provide any financial support but are making contributions in other ways including letting their child live at home for free (43%), charging reduced rent (25%) or providing free childcare (15%).
81% of parents surveyed said they would be more than happy to provide financial support if they were able, but only 5% could afford to lend the average first-time buyer deposit o £50,000 or more.
Of those that have provided financial assistance to their children 59% gifted the support and 40% loaned the money.
Owen Woodley, Managing Director, Post Office Money commented: “Our research found that millennials can, on average, only save 7% of their income towards a deposit which, given high cost of homes in the UK, is leaving many chasing a dream but struggling to realise it.
“For reasons beyond their control, the vast majority of the younger generation will need help and we can see that parents are doing all they can to support their children. 59% of parents we spoke to are able to make a financial contribution and many supported their children’s saving in other ways. However, only five per cent of parents were able to provide the full amount required for a deposit and so FTBs are still having to work hard to make their dream a reality."
