New research from Twenty7tec found a growing reliance on family wealth for home deposits, raising concerns about market access.
The ‘Bank of Mum and Dad’ (BOMAD) now supports over 10% of buyer deposits, up from 6.9% in 2020.
Over five years, BOMAD’s aid increased by 46%, with contributions to existing homeowners rising from 2.19% to 3.05%.
House prices also rose by 7%, while consumer prices increased by 24%, highlighting affordability challenges.
Nathan Reilly (pictured), director at Twenty7tec, said: “With our data highlighting the increasing role of family wealth in home buying, it begs the question, will home buying soon only be attainable for those with access to family wealth?
“For many, the ability to buy a home is no longer about earnings alone but about the financial support they can access from their families.”
Reilly added: “As affordability pressures continue to mount, we are noticing new ways in which families are passing down wealth.
“This could be in the shape of early inheritance planning to more structured financial transfers – rather than simply gifting deposits.”
He said: “At the same time, many first-time buyers are being forced to explore alternative mortgage solutions as they struggle to save enough.
“This has never been more prevalent than in high-cost areas such as London and the South East.
Whether this is due to affordability pressures on families themselves or a strategic shift in financial planning, it raises serious questions about who will be able to buy in the years ahead.”
