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Some parents contribute tens of thousands to helping their kids get on the property ladder (Picture: Getty Images) The Bank of Mum and Dad remains a key pillar of financial support for young adults in the UK, especially as families grapple with the ongoing cost of living crisis. Recent research has highlighted the role parents play in helping their children manage rising expenses, with many contributing tens of thousands towards getting on the property ladder. A SunLife poll of 2,000 over-50s revealed that 22% of parents have given significant financial assistance to their children in the past five years, with the average contribution nearly £2,000. These contributions were primarily to help cover soaring living costs such as energy bills, underscoring how parental aid continues to act as an important safety net amid economic pressures. And 18% of parents contributed towards house deposits for their kids, handing over more than £30,000 on average to aid entry onto the property ladder. Families also help fund holidays, vehicles, and weddings, reflecting a broad spectrum of financial assistance. The scale of family contributions in the property market Industry data from estate agent Savills underscores the substantial scale of the support from the ‘Bank of Mum and Dad’. In 2024, parents provided approximately £9.6 billion in gifts and loans to first-time buyers across the UK. This enabled 173,500 buyers to enter the property market, representing 52% of all first-time buyers — a slight decline from 57% in 2023, but higher than every other year since 2012. The average gift amounted to around £55,572 per buyer. Over half of first-time buyers in 2024 had financial help from the Bank of Mum and Dad (Picture: Getty Images) Lucian Cook, head of residential research at Savills, noted that tighter mortgage lending criteria and increased interest rates have made family help essential for many young buyers to secure more favourable mortgage deals. Meanwhile, Mark Screeton, CEO of SunLife, emphasised that parental contributions not only provide practical assistance but also create emotional satisfaction, strengthening familial bonds. He suggested that homeowners who are ‘asset rich but cash poor’ might explore equity release as a means to support their children’s home-buying ambitions, enabling them to benefit from their generosity within their own lifetime. New here? Sign up for The Key newsletter Hello! I’m Rachel Moss, Metro’s lifestyle editor. Whether you’re renting, buying, or just dreaming, our weekly property newsletter is packed with expert tips, housing hacks, and the best (and most bonkers) homes on the market. My team bring you the latest in property, travel, money and much more Recently, we wrote about a women-only commune, why London’s fanciest houses are opening their doors to visitors and buying a home through shared ownership. Sign up now. Rising pressure on parents providing support But the financial assistance parents offer is not without cost to their own security. A TSB survey from 2022 found that 36% of parents were financially supporting adult children, with 15% planning to do so in the future. Despite many parents themselves facing financial hardship (55% reported difficulties in continuing support), one third were willing to sacrifice their own financial wellbeing, including cutting spending or incurring debt, to assist their offspring. Typical areas of support include childcare (31%), bills and household expenses (21%), house deposits (8%), and debt repayments (4%). Alternative avenues for first-time buyers For young people unable to access family funds, various government initiatives remain available to facilitate homeownership. These include Help to Buy ISAs (for existing account holders), equity loans for new builds, Lifetime ISAs, shared ownership schemes, and mortgage guarantees that enable purchases with smaller deposits. Additionally, support programmes from energy suppliers and other organisations provide some relief for those experiencing difficulties with everyday expenses. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
