Family wealth continues to play a decisive role in determining who can buy a home in Britain, with almost half of homeowners saying they received financial support from relatives to get on the property ladder, according to new research.
A survey by Sold.co.uk found that 41% of homeowners had help from family members when purchasing their property, highlighting the continuing influence of the so-called Bank of Mum and Dad – now one of the most important funding sources in the UK housing market.
Persistently high house prices, large deposit requirements and tougher mortgage affordability rules are leaving many would-be buyers unable to proceed without outside support.
Figures from the Institute for Fiscal Studies estimate that parents provided around £17 billion in gifts and loans to adult children buying homes in 2023.
DEEPENING TREND
The new data suggests this trend is deepening rather than easing. Men (44%) were more likely than women (38%) to have received financial help, while the highest reliance was among buyers aged 18 to 24.
Regionally, London (59%) and Northern Ireland (55%) recorded the largest proportions of buyers who had received assistance from family.
Matt Gerrish, property expert at Sold.co.uk, says: “With the cost of living making saving for a deposit unachievable for many, the dream of home ownership feels more out of reach than ever before.
“This research shows that parents are, for many, the only answer to bridging the financial gap to securing a mortgage and affording a place of their own.”
INEQUALITY CONCERNS
While family transfers are proving essential for a significant share of first-time buyers, the findings also highlight widening disparities between those with access to family wealth and those without.
Gerrish warns: “There has been much debate about the growing divide between young and old when it comes to home ownership, but these figures indicate a widening gulf between those who can knock on their parents’ door and ask for help and those who simply cannot.
“This is likely to reshape the property market for many years to come.”
GIFTED DEPOSITS
Among those who received support, 51% were given money towards a deposit, 24% benefited from an inheritance and 7% received help from grandparents. A further 6% turned to friends, while 5% had a parent or guardian act as a mortgage guarantor.
The findings come ahead of the Chancellor’s 26 November Budget, which many homeowners fear could introduce further tax pressures.
One in five surveyed said the forthcoming financial statement has prompted them to delay plans to move.
A further 26% cited concerns over job security amid the current economic backdrop, signalling a market where caution is outweighing confidence.
