More than half of first-time buyers now rely on financial support from family members to purchase a home, according to new research from Savills.
The estate agency group estimates that gifts, loans and inheritances provided by relatives contributed £11bn towards first-time buyer purchases in 2025, including £8.3bn in direct financial support.
The study found that 53% of first-time buyers received help from family members, compared with 64% who used their own savings towards a deposit. Gifts were the most common form of assistance, with 32% of buyers receiving money from relatives, while 16% relied on family loans.
The research also found that support is increasingly coming from a wider circle of relatives rather than solely parentsupport is increasingly coming from a wider circle of relatives rather than solely parents, while 14% of first-time buyers used inherited wealth to help fund their purchase. That compares with 12% who made use of government-backed homeownership schemes.
“First-time buyers continue to feel the impact of higher mortgage rates, which has stretched affordability and kept the average deposit high and maintained a reliance on the so-called Bank of Mum and Dad” said Lucian Cook, head of residential research at Savills.
“While first-time buyer activity held up better than expected in the early part of the year, the outlook remains challenging in the current interest rate environment.
“Less stringent mortgage regulation and gradual easing of rates over time should help to broaden access to home ownership to a degree. While that will pave the way for more lower deposit mortgages, it’s clear that family support will remain a crucial component of getting first-time buyers on the housing ladder.”
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