The number of first time buyers relying on family support has dropped, according to research by Moneybox.
The online Lifetime Isa provider found 76 per cent of would-be homeowners planned on buying their first property with their own savings, an increase of 57 per cent on the year before.
The survey of 1,000 hopeful first time buyers also found 20 per cent expect to receive some financial support from family and 20 per cent said they hope to benefit from inheritance when they buy.
Brian Byrnes, head of personal finance at Moneybox, said: “While owning a home is still a top financial goal for most people, it appears that Bank of Mum and Dad could be starting to struggle to support their children’s property ambitions to the same extent as in previous years.
"As the cost of living puts pressure on household finances the obstacles facing prospective homeowners have only increased in the last year.
"Affordability and saving a suitable deposit are among the biggest concerns and it is clear more support is needed to help the next generation of home buyers navigate the changing market conditions.”
Moneybox's survey found in the past six months people have decreased how much they save towards a deposit each month by 18 per cent.
The average £344 per month saved, fell to £287 a month while last year, Moneybox Mortgages customers paid £66,000 on average on their first home deposit.
Moneybox also found many aged 18-39 who are eligible for a Lifetime Isa were not making the most of the 25 per cent government bonus.
It said if savers out their £287 a month into a Lisa they would get an extra £861 each year as a result of the LISA government bonus.
Byrnes added: “Saving in a cash Isa will typically offer a better rate than an easy access account and will also ensure your savings are protected from the tax man.
"The Lifetime Isa also provides invaluable financial support to first time buyers, and so for anyone wanting to do all they can to boost their deposit savings, it can really pay to consider the best mix of savings products to help you achieve your goal as quickly as possible.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
