Most parents, when asked to outline their hopes for their children, will include "a home of their own" on the list. It seems there is some primal instinct at work here, with the idea of a child ending up owning his or her own property seen as a proxy for general prosperity and, at a push, maybe even happiness, writes Una McCaffrey

The problem is one of affordability, with the path between childhood and owning a property usually less than straightforward.

Making matters worse in the last few years has been the growing trend for single people, often in their 20s, to buy houses or flats alone. Where the norm might have seen two incomes contributing to mortgage repayments, it is now common for one person to bear the entire burden of funding the deposit and eventually the entire mortgage.

One key contributing factor to the shift has been the willingness of generous parents to help propel their kids on to the property ladder by making a financial contribution to the cause.

This has become much more feasible since the property boom of the past decade left lots of parents sitting on properties that are much more valuable than their mortgage repayments would suggest. A quick "equity release" later and their children have that all-important deposit.

Ms Sarah Wellband of mortgage broker, REA, estimates that as many as 80 per cent of first-time buyers are being helped to fund their property purchase by their parents. She says this parental help usually takes two forms: either the child will receive a gift from mum and dad, or the parents will put their names on the mortgage along with that of their son or daughter.

Ms Wellband says lenders will generally have little problem with either arrangement, as long as a couple of simple steps have been taken. "Under money laundering legislation, lenders have to have proof of where the deposit is coming from so, if a gift is involved, the parent has to provide a letter stating the amount given, that is a gift rather than a loan and that they will have no legal interest in the property," she explains.

Some lenders go further by requiring the people making the contribution to take independent legal advice on the matter, or to confirm that they considered this and opted to proceed without it.

Where the parents put their names on the loan, they will, says Ms Wellband, be treated in the same way as the primary borrower (the child) and will thus be liable for the entire debt in the event of a serious default.

Presuming all goes to plan with this type of arrangement, however, Ms Wellband says the lender will generally not be concerned about where the mortgage repayments come from when the loan kicks off and direct debits or standing orders begin. But she notes that the child is usually the one who takes responsibility for the monthly payments.

This tends to mean that lenders will base the term of the mortgage they offer (usually 25 or 30 years) on the age of the child rather than the parents.

The presumption is, Ms Wellband notes, that the child will be earning enough to support the loan independently by the time the parents retire. "I guess if the parents were in their 60s this might cause an issue but most are in the late 40s to mid 50s, which gives the child at least 10 years to take over the debt," she says.

As for the typical parental contribution, Ms Wellband says it varies from €5,000 to €100,000. She reckons the average sum advanced is between €15,000 and €20,000. Some "children" will also receive financial support from other relatives, although this will be less common than parental help.

Ms Wellband says she has seen, for example, two recent applications where brothers have helped out their sisters with a purchase. She warns, however, that families considering entering into this kind of arrangement must always look to the future consequences of their action.

"There can be a concern with joint applications with siblings where one has a family home in that, if they assist a sibling get on the property ladder, their own borrowing capacity might be compromised at a time that they are looking to trade up."