Parents and grandparents face putting away more than £3,000 per year typically to help children on to the property ladder in adulthood, and in London it’s more than double that.
A child born in 2021 would need average annual deposits of £3,129 into their Junior Isa (Jisa) to afford the average UK first-time buyer deposit once they reach the age of 18, according to Quilter.
And in the capital, London parents will need to squirell away £7,120 per year.
The research assumed that the average first-time buyer deposit, at £57,278 in 2020, increases by two per cent each year.
It also assumed a four per cent return on savings.
Heather Owen, financial planning expert at Quilter, said: “The average amount put into Jisas was just over £1,000 in 2019/20, but a child born today will need contributions worth over three times that amount, or £3,129 each and every year for 18 years in order to generate a pot big enough to afford a deposit when they reach adulthood.
“Parents and grandparents will be assisted by the fact that Jisas have become significantly more generous, and the subscription limit stands at £9,000, but many parents and grandparents will underestimate just how much is required to support their child or grandchild become a homeowner.”
Quilter analysed Halifax first-time buyer data to make the findings.