The Department for Communities and Local Government has warned parents they could come under growing financial pressure to help their children take their first step onto the property ladder.
Government figures show that 14,000 people a year are releasing on average £74,000 equity from their homes to help them buy another property, either for themselves or for family members.
Housing minister Yvette Cooper stressed help from the 'bank of mum of dad' was "unfair on people who can't get family help to get them started".
Ms Cooper said that young people's need for assistance was likely to continue or get worse if people continue to oppose the construction of new housing.
She urged homeowners not to reject the planning guidance supporting new house building which will be released shortly.
A shortage of supply has been identified as a key cause for rising house prices by Rightmove property index, which finds that house prices are currently growing at their fastest rate for two years.
The Department of Communities and Local Government says rising demand and affordability pressures mean current building levels - over 165,000 new homes yearly - are inadequate.
It now targets the building of 200,000 new homes each year.For more information about first time buyer mortgages, click here.
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