Jackson, the chief executive of the Cambridge Building Society, told a meeting of business leaders that many potential first-time buyers could not afford a deposit on a home.

Mr Jackson said that the number of first time buyers was falling particularly in the over-heated south east property market.

As a result, parents, who have seen the value of their homes increase in the recent market boom, should use their gains to help their offspring, he suggested.

Re-mortgage
"Most of the young people we see need a lot of help to get a mortgage and we as parents have benefited from the rise in property values over the years, so it is up to us to help them," Mr Jackson said.

Mr Jackson suggested that parents could act as guarantors for their children's mortgage or even borrow against the increased value of their own home to raise money for a deposit.

However a leading independent financial adviser (IFA), Colin Jackson of Baronworth Investment Services says that parental help is not the answer in most cases.

"Acting as a guarantor can be dangerous as ultimately you could end up losing your home if the person you are acting as guarantor for defaults on their payment," he told BBC News Online.

"As for re-mortgaging, many parents are unwilling to do this as it involves taking on extra debt at a time when they may be nearing retirement," the financial adviser said.