A step-by-step guide to helping your children onto the property ladder ¦ Property Guides on Times Online

House prices may be falling. But many struggling first-time buyers still rely on their parents to help get them on the property ladder. Here are ten things you need to consider before you whip out the cheque book:

1. Half of all first-time buyers get help of some sort according to figures from Hometrack, the property data company.

2. Even so, the numbers of first-time buyers is falling. The Council of Mortgage Lenders says that 34 per cent of all new loans for house purchases were made to first-time buyers at the end of last year compared with over half in 1990.

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3. First-time buyers have an average income of £35,000 and are 29 years old. Most borrow just over three times their salary, CML statistics show.

4. Some parents give children money for their deposit to reduce the size of their estate and hence cut down their inheritance tax liability.

5. Having a deposit of at least 10 per cent of the value of the property helps secure a much lower rate on the mortgage.

6. Rents have been rising, so saving up for a deposit has been more difficult.

7. The average price of a home was now just over £180,000 in January 2008, according to Nationwide building society.

8. Remember to factor in the cost of buying. Solicitor’s fees, surveys and Stamp Duty for properties of £125,000 can add thousands to the cost of buying. New homes also need furniture.

9. Your child could get help from a housing association rather than you. Shared Ownership Schemes allow buyers to invest in an initial percentage of a property, paying a mortgage on that tranche and a subsidised rent on the remainder to a housing association such as Notting Hill Home Ownership.

10. It is not compulsory to help your children buy a house. Think hard about whether you can actually afford it. You can also claim the bank of mum and dad is suffering from the credit crunch.

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