New study reveals value of ‘bank of mum and dad’ for home buyers
One in five second-time homebuyers get help from the ‘bank of mum and dad’
- New research indicates that one in five homeowners making their second move on the property ladder receive financial assistance from family or friends, highlighting the enduring role of the ‘Bank of Mum and Dad'.
- While 30 per cent of first-time buyers also receive such support, 'second steppers' secure an even higher average of £81,451 towards their home purchase, compared to £76,239 for first-time buyers.
- Nearly three in 10 homeowners who received financial help for their second or third properties also reported benefiting from support for their first home, typically through lump sum gifts, inheritances or loans.
- Around half of renters surveyed believe they would find it impossible to buy a home without an inheritance or loan from a family member, with property prices and “moving goalposts” cited as major obstacles.
- Experts suggest that elevated mortgage rates and ongoing affordability challenges mean family assistance is becoming a permanent fixture in the housing market, supporting all sections due to cost-of-living pressures.