Gifts and loans totalling £9.6 billion were given to first-time buyers in the UK by their parents last year.
According to the latest analysis from property firm Savills, 173,500 first-time buyers received assistance in 2024 – and they were each given an average of £55,572.
This equates to just over half (52 per cent) of all first-time buyers, which, although lower than the proportion that received assistance in 2023 (57 per cent), is still higher than every other year since 2012 (53 per cent).
Overall, the “Bank of Mum and Dad” has provided £38.5 billion of assistance over the past four years.
This is 71 per cent more than the previous four years (£22.5 billion), as a result of a more stringent mortgage market and higher mortgage rates.
Lucian Cook, head of residential research at Savills, said: “First-time buyers are still feeling the impact of higher mortgage rates and tougher lending criteria, meaning that a greater proportion have needed support to get onto the housing ladder, and those who were able to, took advantage of greater family support to try and secure a deal at a lower mortgage rate.
“Looking ahead, the first half of this year saw very high numbers of first-time buyer activity as buyers rushed to beat the changes in the stamp duty thresholds at the end of March.
“While we can expect this number to fall over the coming months, for this cohort of buyers, who are typically paying large amounts in rent each month, there is less incentive to wait for rates to drop.
“Relaxation of mortgage stress tests is expected to boost borrowing by lowering the barrier for entry and allowing first-time buyers to qualify for larger mortgages.
“So, although more first-time buyer activity may mean more Bank of Mum and Dad assistance, this is likely to be at a lower average cost per first-time buyer.”
However, how many buyers need assistance, and how much they require, varies region by region.
In London, average first-time buyer incomes are typically the highest earned nationwide, but this does not translate to higher levels of homeownership, as incomes still struggle to keep pace with rising deposit requirements.
“Here, the average deposit as a percentage of income is 138 per cent,” he continues.
“This is far beyond what most average buyers can save for independently, meaning that it is incredibly difficult for buyers to get a foot onto the ladder without receiving help.”
