With housing affordability at its best level for six years, 70% of parents with children over the age of 18 believe now is the right time for their children to get on the housing ladder, according to Lloyds TSB.

One in four of these parents said they were keen to help their adult children take advantage of the current market conditions but just 8% felt they already had a savings pot large enough to help each of their children. On average, they have a total of £41,000 saved. 93% are intending to provide the same financial assistance to all of their children

Lloyds TSB’s Lend a Handmortgage lets parents use their savings without actually having to write their children the cheque. Their deposit is held in a savings account paying a competitive rate of interest and, after three years, they are free to use their savings again as they wish, maybe to help their next child buy their first home.”

After a rapid decline of first-time buyers during 2008, the number returning to the market is gradually beginning to increase. In January 2009 there were 8,600 first-time buyers compared to 19,200 in August. In the second quarter of 2009, first-time buyers accounted for 38% of house purchases.

Research by Unbiased, the professional advice website, has revealed first-time buyer enquiries reached an all-time high in September, representing 51% of all mortgage applicants

Karen Barrett, chief executive of Unbiased, said: “With over half of people searching for advice on first-time buyer mortgages, these figures suggest that many first-time buyers have been waiting to step onto the property ladder and now have regained interest. It appears many have been biding their time but now feel they are in a position to investigate what’s on the market and take the first steps by seeing a whole of market mortgage adviser to advise them on their mortgage options.

Stephen Noakes, commercial director of mortgages at Lloyds TSB, said: “The current housing market presents a real opportunity for first-time buyers, as long as they are ready to buy with a deposit. Housing affordability is back to the level it was in 2003, so many parents with grown-up children want to help them take advantage by using their savings”.

In light of the recent Financial Services Authority (FSA) proposals on a review of the mortgage market, there could be a future dip in enquiries from first-time buyers as, with increased regulation, mortgage lending criteria could become even stricter. While we welcome the protection that responsible lending will bring to consumers, it is vital that first-time buyers are still able to access the property market and get on the housing ladder through an affordable mortgage. Seeking whole of market mortgage advice will always ensure first-time buyers are able to find out what mortgage options available to them.