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According to estate agency Savills, more than half of all UK first-time buyers received help from their families to purchase a property in 2024. While lower than the previous year, this number is still higher than every other year since 2013.
Estate agency Savills has said that over half of all new property buyers in 2024 had help from their families, or the ‘bank of mum and dad’ as it’s colloquially known in the UK.
While the rate was slightly lower than 2023, it was still higher than every other year since 2013. Stamp duty charges changed from the end of March, which encouraged a rush of buyers before that deadline was up.
House prices, rent costs and mortgage interest rates have all risen significantly over the past decade, making it more difficult for young people to get themselves onto the property ladder.
According to Savills, 52% of first-time buyers had money loaned or gifted to them from their families in 2024. This was part of their annual report. Keep in mind that family help peaked in 2009 as a result of the financial crisis at 70%, so while numbers have been rising on average each year, they’re not at their highest.
Roughly 173,500 first-time buyers received a total of £9.6 billion in 2024.
Offering larger deposits from the outset when purchasing a house means that buyers can get a lower mortgage rate, making it more affordable long-term. This is where most of the family support has come into effect, with extra funds being used to offer up a larger cash sum upfront.
The need for extra help is also likely a result of the cost-of-living crisis. Most regular purchases such as food and basic necessities have increased massively in the last few years, making it harder to save cash.
More expensive rent prices have also pushed many Gen Zers and Millennials to stay living with parents for much longer than they did several decades ago.
As mentioned, stamp duty (an additional tax on a single property purchase) changed at the end of March. To qualify for paying stamp duty, buyers originally had to purchase a home that was worth at least £425,000. This has now been lowered to £300,00.
This will affect many young people purchasing a home for the first time, making it all even more expensive. Fun stuff.
