Bank of Mum and Dad handed out nearly £10billion last year to help their children onto the property ladder - with families now offering support to more than half of all first-time buyers
The Bank of Mum and Dad handed out £9.4 billion last year to help get their children on the property ladder.
Research found the figure is double the total five years ago and that around 57% of those able to get on the property ladder in 2023 received help from parents or family members.
With soaring mortgage rates in 2023, the Bank of Mum and Dad saw a sharp increase in handouts, with £8.8 billion given in 2022 and £5 billion in 2019, Savills found.
Huge rent increases in many areas meant many potential buyers were unable to save a significant sum to buy properties, with families stepping in to plug the gap.
It is the first time that more than half of new buyers have received help from family since the Help to Buy scheme was launched in 2013.
Research found the figure is double the total five years ago and that around 57% of those able to get on the property ladder in 2023 received help from parents or family members (stock image)
With soaring mortgage rates in 2023, the Bank of Mum and Dad saw a sharp increase in handouts, with £8.8 billion given in 2022 and £5 billion in 2019, Savills found (stock image)
The scheme, which gave buyers of new homes a five-year interest free loan of up to 40% the purchase price, supported 31.4% of all new home sales before it ended last March.
Critics of the scheme dubbed it ‘Help to Sell’ with indirect cash handouts given to developers, driving up prices.
The Government has suggested it will overhaul planning systems to build new homes in an effort to drive down prices rather than reintroduce the scheme.
The so-called Bank of Mum and Dad is expected to be strained again, with families predicted to give £30 billion to first-time buyers over the next three years.
The average interest rate for mortgage with a 10% deposit is now double from that offered in summer 2022.
