Nearly one in three young adults planning to buy their first home have had to move back in with their parents in order to save enough money, with 20% saying it is "virtually impossible" to get a mortgage.
More parents are putting up their children so they can set aside the money needed to pay for a deposit. The average home in Britain costs £179,817, meaning first time buyers need at least a £9,000 deposit to qualify for a mortgage.
According to research from Halifax, 28% of adults with children between 20 and 45 are accommodating them in the family home, compared to 24% three years ago.
More than one in five 20 to 45 year olds who are not homeowners believe it is "virtually impossible" for first time buyers to get a mortgage.
Parents are also helping finance the deposit, furniture and other moving costs as young people struggle to pay their own way.
More than 25% of parents had contributed towards a deposit, with 20% saying they had helped with other costs such as stamp duty.
Craig McKinlay, mortgage director at Halifax, said: "Whether it is giving their children a cash lump sum or providing a roof over their heads while they save, it is clear the bank of mum and dad will have a role to play in helping their children get on the property ladder for the foreseeable future."