Gifts and loans from the Bank of Mum and Dad totalled £9.4bn in 2023, Savills reveals.

The latest data found that the total has almost doubled since 2019.

In total, 164,000 first-time buyers (FTBs) had family assistance in buying their first home in 2023, accounting for 57% of all mortgaged FTBs.

While the number of assisted buyers is down from a peak of 198,000 in 2021, this is the highest proportion of FTBs receiving help since 2012, and is 10% up on 2022.

Average quoted mortgage rates for 90% and 95% loan-to-value (LTV) rates were 5.66% and 6.08% in July 2024, respectively, according to the Bank of England.

Although these rates have come down from their respective peaks, Savills explains they have increased significantly in the last two years.

As mortgage rates continue to decrease, Savills has forecast that a smaller proportion of FTBs are likely to need support from the Bank of Mum and Dad.

While the actual number of those supported is expected to remain on par with 2023, the proportion of FTB purchases receiving support will decrease from 57% in 2023 to 54% in 2024.

The total contribution towards FTB purchases will remain in line with 2023 levels (£9.3bn). Savills expects a total of almost £30bn to be paid out over the next three years.

Savills director of residential research Frances McDonald says: “While many homebuyers enjoyed record low interest rates during the early part of the decade, more stringent mortgage requirements, which have been in place since the start of the pandemic, have impacted higher LTV lending, most commonly used by first-time buyers.”

“In addition to this, record rental growth and increased mortgage rates (particularly for high LTV products) have acted as a further blow to first-time buyers’ home-owning aspirations. As a result, a greater proportion have needed support to get onto the housing ladder, and those who were able to, took advantage of family support to try and secure a deal at a lower mortgage rate.”