True value of ‘bank of mum and dad’ for first-time buyers revealed in new analysis
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How the bank of mum and dad is changing the housing market
- UK Finance analysis reveals that "the bank of mum and dad" significantly impacts the UK housing market, enabling first-time buyers to purchase properties earlier and at higher prices.
- Assisted buyers enter the market around age 30 with an average household income of £56,000, purchasing homes worth almost £40,000 more than unassisted buyers, who have a higher average income but buy about 2.5 years later.
- The average deposit for assisted buyers is £118,073 compared to £60,741 for unassisted buyers, with an even greater disparity in London.
- The temporary stamp duty holiday disproportionately benefited assisted buyers, with increased equity withdrawals suggesting families leveraged property wealth to help first-time buyers.
- UK Finance warns that increasing reliance on family support risks deepening inequalities in the housing market, emphasising the need for solutions addressing both supply and affordability.