Rising property costs and broader affordability pressures are prompting more buyers beyond their first property to seek family help. The latest figures shed light on how deep the reliance on the so-called “Bank of Mum and Dad” has grown across the UK housing market.
Barclays’ new Property Insights report underscores a changing narrative. Traditionally viewed as a resource for younger first-time buyers, family financial support is now proving just as vital for those making their second or even third step on the housing ladder. According to Barclays, almost half of those who received help for their current property also benefited from family support during a previous purchase.
Second-Steppers Rely Heavily on Financial Gifts From Family
According to Barclays, 20 percent of second-time buyers received help from family or friends to purchase their home, with the average contribution amounting to £81,451. This is a notable increase over the £76,239 average gifted to first-time buyers. These gifts are not isolated occurrences either, 49 percent of those helped on their second or third home also received support the first time around.
The most common forms of assistance include lump-sum gifts from parents (39 percent), followed by inheritances (27 percent), and informal loans from family or friends (13 percent). Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, noted that the widespread reliance on familial support “underlines the impact of cost-of-living pressures on all sections of the market.”
Renters, too, report struggling to break into homeownership without family intervention. According to Barclays, over half (52 percent) of renters say they would be unable to buy a home without receiving an inheritance or financial support from relatives. While mortgage payments are often seen as manageable, high upfront costs (particularly deposits) remain a considerable barrier.
Budget Clarity Spurs Renewed Interest in Moving
The impact of the recent Autumn Budget announcement appears to have had a stabilising effect on consumer confidence in the housing market. According to Barclays, half of prospective buyers who had paused their moving plans in anticipation of the Budget have now resumed them. Confidence levels, though still modest, ticked upwards in November to 26 percent from 24 percent the previous month.
Meanwhile, rental and mortgage spending showed signs of easing. November saw a 3.5 percent year-on-year increase in payments, marking the slowest rise since January’s 2.0 percent growth. While affordability remains a concern, this slowdown may offer some respite to households adjusting to new financial realities.
Julien Lafargue, Chief Market Strategist at Barclays, commented that “clarity has improved allowing economic actors to start planning ahead.” He added that affordability could be further addressed through a mix of lower interest rates, improved housing availability, and financing innovation.
Among those already on the property ladder, 17 percent of mortgage holders have either remortgaged this year or plan to do so next year. With many expecting higher monthly costs, nearly two-thirds are reassessing their budgets. A third of homeowners, according to Barclays, are planning to reduce discretionary spending such as takeaways and beauty services in order to manage future payments.
The findings highlight a UK housing landscape that is adjusting but still heavily dependent on intergenerational financial support. While affordability metrics may be improving slightly, the data makes clear that family assistance remains a central feature of buying a home, not just for first-time buyers, but increasingly for those stepping up as well.
