Over 10% of buyer deposits are now funded by the Bank of Mum and Dad
New data released by Twenty7tec has highlighted that family wealth is playing a bigger role than ever before in home purchases – raising fresh concerns that only a privileged few will be able to enter the market.
With even the middle classes being squeezed out of homeownership, new data shows that the number of parents giving a much-needed hand with deposits has increased by 46% over the past five years (2020 to 2025 year-to-date). In fact, parents now fund over 10% of buyer deposits, up from 6.9% in 2020.
However, it’s not just first-time buyers benefiting from family support – parents are increasingly stepping in to help those further along in their property journey. Parental contributions for existing homeowners have risen 39%, from 2.19% to 3.05%, showing that financial assistance is playing a role even beyond the initial purchase.
Over the same period, the average house price has risen by 7%, from £251,500 to £268,000, while consumer prices have increased by 24%, showing the financial squeeze on buyers.
It could be that those who cannot reap the benefits of generational wealth could be pushed out of homeownership altogether, as rising house prices and affordability pressures make parental support a key factor in securing a home.
"With our data highlighting the increasing role of family wealth in home buying, it begs the question, will home buying soon only be attainable for those with access to family wealth?," comments Nathan Reilly, Director at Twenty7tec, “For many, the ability to buy a home is no longer about earnings alone but about the financial support they can access from their families.
“As affordability pressures continue to mount, we are noticing new ways in which families are passing down wealth. This could be in the shape of early inheritance planning to more structured financial transfers – rather than simply gifting deposits,"
He adds, “At the same time, many first-time buyers are being forced to explore alternative mortgage solutions as they struggle to save enough. This has never been more prevalent than in high-cost areas such as London and the South East,"
"Whether this is due to affordability pressures on families themselves or a strategic shift in financial planning, it raises serious questions about who will be able to buy in the years ahead."