August has seen a 35% increase in the number of searches for borrowers using gifted deposits, the latest data from Legal & General (L&G) Ignite has revealed.

The mortgage research and sourcing platform also found that the number of searches for borrowers using gifted equity or making a concessionary purchase also increased by 75%.

L&G said the rise in these search numbers comes as no surprise, after its “bank of family” research found that 77% of buyers receiving family assistance directed at least a portion of their funding towards a deposit.

Furthermore, buyers’ heavy reliance on family contributions was supported in a 15% increase in the number of searches for guarantor/family assistance, while searches for shared ownership rose by 11%.

The data acquired and analysed by L&G also uncovered that the market was being driven by portfolio landlords, with searches by this group of investors increasing by 22% from July to August.

Landlords also used financial support to enter the market, with searches for landlord/vendor gifted equity jumping by 18%. Demand for holiday lets also increased by 22%.

‘Visa’ remained the most popular criteria used by advisers who were searching on behalf of clients, with searches on behalf of expats not in the UK and overseas customers climbing by 17% and 21% respectively, showing an appetite for the UK market from foreign investors.

Head of mortgage products and transformation at L&G Technology, Jodie White, said: “Family gifting has been a common element of the homebuying process for some time now, and our data continues to tell this story, alongside L&G’s own ‘bank of family’ research.

“Criteria searches for gifted deposits, gifted equity, and more, continue to dominate our Ignite results, further highlighting the prominent role that family contributions play in supporting the UK’s housing system. At the same time, it's clear that buyers are also relying on specialist products and alternative schemes that make it more achievable to get on the housing ladder amid the ongoing cost of living crisis.

“During what is continuing to be a financially challenging period for many, it's critical that advisers adopt innovative technologies to effectively handle the demand for advice across a wide range of sectors. Advice is critical right now, and advisers have a key role to play in helping buyers access a comprehensive range of options that aligns with their financial needs.”

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