New analysis from UK Finance highlights the impact of family financial support in the first-time buyer (FTB) market – often known as the Bank of Mum and Dad.
It looked at assisted and unassisted buyers in terms of deposits, age, household income and purchase price in 2024 and found notable differences across these in each region of the UK.
Nationally, first-time buyers who receive assistance are able to buy a home at an average age of just over 30, with an average household income of £56,000. In contrast, those purchasing without support tend to be older—over 32 years old—and have a higher household income, at £65,000. Despite this, assisted buyers are on average purchasing higher-priced properties, thanks to larger deposits facilitated by family support.
This divide is seen across the UK but the difference in deposit amounts is most pronounced in London. In 2024, a first-time buyer purchasing without support typically put down a deposit of nearly £150,000. However, for those receiving family assistance, the average deposit was just under £225,000.
It also looked at the impact of the temporary Stamp Duty holiday, which the government introduced during the pandemic. This was aimed at supporting the market during a period of economic instability, but it appears to have had uneven effects, helping those who could also get help from the Bank of Mum and Dad the most.
By reducing transaction costs, our analysis found a disproportionate increase in the number of assisted-FTBs. We also found that the policy coincided with a notable increase in borrowers withdrawing very sizeable amounts of equity when remortgaging, suggesting that some households were drawing on their own property wealth to help family get on the housing ladder.
James Tatch, UK Finance’s Head of Analytics, comments: “First-time buyers are essential to the UK housing market, helping to unlock transactions further up the chain and maintain overall liquidity. While the majority of first-time buyers are still managing to purchase without help, the growing reliance on family support risks deepening inequality in the housing market. A balanced approach which addresses both supply and affordability issues is essential to ensure the door to homeownership remains open to all.”
