08/05/2025
The Bank of Mum & Dad funded 52% of first-time buyers in 2024, totaling nearly £10 billion. As mortgage challenges continue, family support is becoming less of a boost and more of a necessity. 💷🏡
It’s no secret that getting on the property ladder is harder than ever, but what’s surprising is just how vital family support has become.
According to new research from Savills, the so-called Bank of Mum & Dad (BOMAD) handed out an eye-watering £9.6 billion in gifts and loans to help first-time buyers in 2024 alone. That’s 173,500 buyers receiving an average of £55,572 each.
That means more than half (52%) of all first-time buyers received help from family last year. While that’s slightly down from 2023 (57%), it still marks one of the highest rates of family-supported purchases since 2012.
Zooming out, BOMAD has now provided £38.5 billion over the past four years, 71% more than the previous four-year period. This dramatic increase is a reflection of higher mortgage rates and tougher lending conditions that continue to squeeze aspiring homeowners.
🔍 Why is this happening?
“First-time buyers are grappling with higher rates and tighter borrowing rules, so more are relying on family help,” explains Lucian Cook, Head of Residential Research at Savills. “Those who can get help are using it to secure lower mortgage rates and get ahead of expected changes.”
📉 What’s next?
With mortgage stress tests being relaxed, some buyers may soon qualify for larger mortgages, potentially reducing the average family contribution per purchase. But BOMAD isn’t going anywhere, it’s still a key lifeline in today’s market.
📍 The regional reality
In London and the South East, the situation is especially stark. Even with higher incomes, buyers are struggling with soaring deposit requirements. In the capital, the average deposit needed is 138% of a first-time buyer’s income, a hurdle that’s nearly impossible to clear without support.
