Has the Bank of Mum & Dad Helped You Onto the Property Ladder?
The increasingly renowned Bank of Mum and Dad are expected to lend a helping hand to 25% of UK property transactions this year. In numerical terms this means that our parents are expected to fork out a combined total of over £5 billion, contributing to over 300,000 mortgages.
Each set of parents are anticipated to donate on average £17,500 or 7% of the typical purchase price in order to help their offspring onto the progressively hard to climb property ladder.
So why are we continuously having to depend on our parents to help us get a foot on the bottom rung of the property ladder? Since recuperating from the financial crisis, the property market prices have been spiralling uphill at a lot quicker pace than salaries, which has therefore made home ownership a much tougher achievement.
Property has become a lot tougher for first time buyers to secure by themselves. Buyers are further hindered by the fact that mortgage lenders are being forced to request larger deposits.
The combined sum of hand-outs towards deposits will reportedly make the Bank of Mum and Dad the UK’s 9th biggest mortgage lender this year, so will this not have a knock on effect on the parents finances and put their own monetary stability at risk? Statistics have shown that in London, parental contributions have already made up more than 50% of the wealth of the average household in the capital.
Accounts have indicated that some parents are deciding to even downsize their property in order to free up some additional funds for their children to put towards their deposit. Other parents have revealed that the money used to get their son or daughter onto the property ladder would have been given to them later in life as part of their inheritance anyhow, so to use it early makes little difference.
Of course not everybody has financially comfortable parents that are willing to help them secure their first property. A larger 75% of the population may be in a position in which they are still seeking a method of finding their ever elusive deposit.
Josh Cousens – abbotFox
You May Also Enjoy
2026 Will Test BTR’s Potential and Government’s Resolve
December Cash Buyers on the Decline
Breaking Property News 10/12/25
Rental demand drops to six-year low
Christmas move-in rush drives short-term rental spikes
