Family financial support, known as the Bank of Mum and Dad, majorly shaped outcomes for first-time buyers (FTBs) in 2024, research from UK Finance revealed.
The research showed that buyers who received help from family bought their homes at an average age just over 30, with a household income of around £56,000.
Those without support tended to be older, over 32, and had higher household incomes at £65,000.
Despite this, those with assistance were able to purchase higher-priced properties because family support meant they could put down larger deposits.
The findings also showed this pattern was seen across the UK, with the difference in deposit sizes most pronounced in London.
FTBs without help there typically put down nearly £150,000, while those with family assistance managed deposits just under £225,000.
The research also highlighted the effects of the temporary Stamp Duty holiday, which the Government introduced during the pandemic.
This policy was intended to help the market but mostly benefited those who could access family support.
Analysis indicated that there was a bigger increase in assisted FTBs during this period.
It also revealed more borrowers withdrew large amounts of equity when remortgaging, likely to help family members get on the property ladder.
James Tatch, head of analytics at UK Finance, said: “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.”
Toby Leek, president of NAEA Propertymark, said: “These figures demonstrate that there is still much work to be done to help first-time buyers get onto the property ladder, and that for many people under the age of 30, home ownership is not a realistic aspiration without financial support from parents.
“With interest rates higher than many people are used to and the average deposit needed to purchase a home now sitting around £50,000, it is imperative that further support is available and all Governments across the UK fulfil their housing targets to help even out demand and supply levels in the long-term.”
