Sun, 04 May 2025

Sun, 04 May 2025 Bank of mum and dad 'helps half of first-time buyers'

An average of £55,572 was given in loans and gifts by members of the family, estimates show.

* More than half (52%) of first-time buyers received financial help from their family in 2024, with an average gift or loan of £55,572.
* The "bank of mum and dad" helped a slightly lower proportion of first-time buyers last year compared to 57% in 2023, but higher than every other year since 2013.
* Family assistance peaked at 70% during the financial crisis in 2009.
* An estimated 173,500 first-time buyers received help from their family, with a total value of £9.6 billion.
* Average mortgage rates for new fixed-rate mortgages were between 5-6%, making it harder for first-time buyers to secure deals without significant deposits.
* The rising cost of living and rents forced some potential buyers to live with their parents longer or seek financial assistance from family members.
* Changes to stamp duty in April led to a surge in first-time buyer purchases ahead of the deadline, but increased costs for those who missed it.
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