ECONOMISTS call it “cross-generational subsidy”, while everyone else talks of “The Bank of Mum and Dad”.

But whatever name you choose, you cannot ignore the ever-growing phenomenon of parent power in the property market. Council for Mortgage Lenders (CML) figures show that, despite rising prices, aspiring first-time buyers are still succeeding in their aim, accounting for 36 per cent of all purchases. But around a half of these first- timers are “assisted” by mothers and fathers.

Whether this selfless trend can continue to grow is uncertain. Some well-off parents will wish to pass on wealth during their lifetimes to limit the inheritance tax on their estates. But the less prosperous will be constrained by the need to invest in their own underfunded pensions. Many parents are remortgaging to release cash to their offspring, but the capacity to take on debt in middle age cannot be universal.

First-time buyers without access to The Bank of Mum and Dad will not be shown the door by more official institutions, as we report on page 4. But home ownership will still be an expensive struggle. The CML notes that the size of the average first-time buyer loan increased by 11 per cent in the 12 months to August. This compares with a 5 per cent rise in income for this category of buyer. Nationwide reports that the average first-time buyer property is now £138,524 — up 7.5 per cent over a year.

The consequence of this is likely to be more group purchases by pals who fear coming to resemble the characters in Friends, still sharing as their 40th birthdays beckon. More group loans, such as the Britannia’s new deal, are now available for mates who wish to become joint-owners.

The existence of such loans means that the level of concern about the difficulties faced by first-time buyers has been somewhat muted of late. Buy-to-let investors may have been snapping up the sort of flats that used to be the preserve of first-time buyers. But we should not wait for this spree to slow down to remember that first-time buyers are crucial to the health of the market. For one thing, there should be a more realistic threshold for stamp duty, which currently starts at £125,000 — below Nationwide’s first-time buyer average price and also below the Department for Communities and Local Government’s figure of £152,712 — which represents a strong argument for change from within the Government itself.

TALKING POINTS It may be perfectly OK again to discuss property prices at social occasions. But there can be a certain reluctance to broach the subject. This arises from the difficulty of assimilating all the different market data. To ensure you sparkle in conversation, this is what you need to know about the latest surveys.

The Department for Communities and Local Government reports that prices have risen by 7.7 per cent (7.9 per cent in London) over 12 months. Previously London has been the strongest performer, but Halifax highlights two other hot spots — Northern Ireland, up 30 per cent, and Scotland, up 14.5 per cent, both over the past year. The strengthening of the economy will support prices throughout the UK, but the pace of growth is expected to moderate.

Nationwide’s quarterly review also underlines the record double-digit growth in Northern Ireland which Fionnuala Earley, the group economist, attributes to “a strong jobs market and high level of immigration”. Nationwide notes that the North is underperforming the rest of England, but Yorkshire and Humberside saw the fastest annual rate of growth behind London and East Anglia.

The Royal Institution of Chartered Surveyors says that prices in September accelerated at the fastest pace for more than four years, propelled by a falling stock of houses. Despite the lack of homes for sale, buyers continue to register with estate agents. This pent-up demand may be one reason why Yolande Barnes, of Savills, says that “there is blood-on-the-carpet competition for the very best family homes in the very best country locations”. She is talking metaphorically, we hope.

PUSHING THE SPATIAL BOUNDARIES In last week’s Bricks and Mortar we featured a graphic illustrating — in actual size — how much floor space you could buy for £50, which ranged from just over 2 square inches in Chelsea to 52½ square inches in Manchester, by way of Guildford (27½ square inches). This way of assessing a property’s value has caused an outbreak of spatial awareness, with readers quizzing estate agents about the amount of room in a property rather than the number of rooms. This trend caused one observer to talk of a “size-mic” shift in perception. We are happy to have triggered a debate, but do not hold ourselves responsible for this kind of humour. anne.ashworth@thetimes.co.uk

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