According to mortgage technology firm, Twenty7tec, this is not limited to first-time buyers leaning on the Bank of Mum and Dad, as parents are increasingly stepping in to support existing homebuyers.
This has increased from 2.19% to 3.05%, which the firm said showed that financial assistance was crucial beyond an initial purchase.
The average house price has increased by 7% over the past five years from £251,500 to £268,000, and consumer prices have jumped by nearly a quarter. These factors contribute to the increasing reliance on the Bank of Mum and Dad.
The research noted that stamp duty changes have “intensified” concerns around affordability.
Nathan Reilly, director at Twenty7tec, said: “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?
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“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 added: “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.”
