(qlmbusinessnews.com . Wed 7th May, 2025) London, UK —
More Than Half of First-Time Buyers Rely on Family Help Amid Rising Housing Costs, Savills Reports
Over half of first-time property buyers in the UK leaned on financial support from their families to get a foot on the housing ladder in 2024, according to new figures released by estate agents Savills.
On average, first-time buyers received £55,572 from the so-called “Bank of Mum and Dad”—a term used to describe the growing trend of parental (and wider family) financial backing for property purchases.
The rising cost of borrowing, combined with surging rents, made entering the property market even more challenging for young buyers last year. Mortgage rates remained stubbornly high, averaging between 5% and 6% for two- and five-year fixed terms. For those without a substantial deposit, rates were typically higher, making family assistance all the more crucial.
Savills’ annual analysis revealed that 52% of first-time buyers benefited from family support in 2023—a modest drop from the 57% recorded in 2022, but still above the level seen in any year since 2013. In total, an estimated £9.6 billion in gifts and loans were provided to around 173,500 buyers.
Lucian Cook, head of residential research at Savills, said that this support had helped many secure more favourable mortgage deals. “First-time buyers are still feeling the pinch from elevated mortgage rates and more stringent lending rules,” he explained.
He also pointed out that many young adults were motivated to buy due to the rising cost of renting. Private rental prices saw annual increases of over 9%, forcing many in their 20s and 30s to move back in with parents to save money.
Geographical disparities remain significant, with varying house prices and income levels across the country. The recent change to stamp duty rules added further urgency for many buyers. In April, the threshold at which first-time buyers in England and Northern Ireland begin paying stamp duty was lowered from £425,000 to £300,000. This prompted a rush to complete purchases before the deadline.
According to the Yorkshire Building Society, first-time buyer applications surged during the first quarter of 2025, reaching their highest level since the post-pandemic housing boom in 2022.
Looking ahead, Cook noted that potential easing of regulatory lending restrictions could help first-time buyers by increasing affordability. “This could reduce the average family contribution required while still enabling more people to access homeownership,” he said.
Despite this, the trend suggests that the Bank of Mum and Dad will remain an integral part of Britain’s housing market for the foreseeable future.
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