New data from UK Finance emphasises the impact of family financial support in the first-time buyer (FTB) market – typically referred to as the ‘Bank of Mum and Dad’.

UK Finance looked at assisted and unassisted buyers in terms of deposits, age, household income and purchase price in 2024 and found marked 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 – 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 distinct in London. In 2024, a first-time buyer purchasing in the capital 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.

UK Finance also looked at the impact of the temporary stamp duty holiday, introduced during the pandemic. Aimed at supporting the market during a period of economic instability the measure 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, the analysis found a disproportionate increase in the number of assisted-FTBs.  It also found that the policy coincided with a notable increase in borrowers withdrawing very sizeable amounts of equity when remortgaging, indicating that some households were drawing on their own property wealth to help family get on the housing ladder.

UK Finance’s head of analytics  James Tatch commented: “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.”

He added: “A balanced approach which addresses both supply and affordability issues is essential to ensure the door to homeownership remains open to all.”

NAEA Propertymark president Toby Leek echoed this sentiment. “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.”