The 'Bank of Mum and Dad' Now Helps More Than Half of UK First-Time Buyers Get on the Property Ladder

More than half of UK first-time buyers now receive financial support from family members to help purchase a home, with gifts, loans and inheritance becoming a significant source of housing funding, according to new 2026 research. Savills found that 53 per cent of first-time buyers receive direct financial support from family through gifts, loans or inheritance, with family gifts and loans accounting for £8.3 billion in 2025, rising to £11 billion when inheritance is included.

The figures show how the so-called 'Bank of Mum and Dad' has moved beyond a shorthand for occasional parental assistance and become a measurable feature of the UK housing market.

Family Money Is Becoming Part of the Deposit Equation

For many first-time buyers, the biggest challenge is not only securing a mortgage but building enough money upfront to enter the market. Savills found that while 64 per cent of first-time buyers used their own savings, more than half also relied on family support to complete their purchase.

Around 32 per cent of first-time buyers received family gifts, compared with 16 per cent who received loans from relatives. Inheritance was used by 14 per cent of buyers, slightly higher than the proportion using government home-buying schemes. A larger deposit can reduce the amount borrowed and may improve affordability calculations when applying for a mortgage.

Younger Buyers Rely on Family Support Most

The reliance on family money is strongest among younger first-time buyers. Savills found that 63 per cent of buyers aged 20 to 24 received some form of family assistance, compared with 44 per cent among buyers aged 45 and over. The difference reflects a wider divide in access to wealth, with older generations having generally had more time to build property assets while newer buyers face higher prices, larger deposits and different affordability pressures.

Barclays' May 2026 Property Insights report found that younger buyers are increasingly adjusting their expectations as a result. Among Gen Z buyers aged 18 to 29, price was the most important factor when purchasing a home, cited by 24 per cent, ahead of location at 19 per cent. The research found that 25 per cent of Gen Z renters said they could not afford to buy in their preferred area, with nearly one in five Gen Z buyers saying they would be willing to move more than 25 miles to secure a home. Barclays also found that average deposits fell 16.4 per cent year-on-year to £57,209, with London recording one of the sharpest declines at 27.2 per cent, bringing average deposits in the capital to £136,057.

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: 'Affordability is the key factor shaping how younger buyers approach the housing market, with many willing to compromise on location or property features to get onto the ladder.'

When the Bank of Mum and Dad Comes With Conditions

The growing role of family support raises questions about how people enter the property market. A buyer with financial help from relatives may be able to reach a required deposit sooner, while someone with a similar income but without that support may need longer to save. Mortgage affordability, employment and income remain central to buying a home, but the latest data points to family wealth as an additional factor shaping access to housing.

Family support can make buying a home possible, but it can also create new financial arrangements. Research from Charles Russell Speechlys, titled 'Gen Z: How we spend it', found that some younger adults view family financial help as coming with expectations attached, including potential influence over financial decisions. For some buyers, the arrangement is a straightforward gift; for others, it may involve repayment agreements, family discussions or expectations about future choices.

According to Savills, the total value of family financial support for first-time buyers reached £11 billion in 2025. The firm said further data on sponsorship trends and deposit patterns is expected to be published later in 2026.