Half of under-55s need family help to buy a home
Nearly half (47%) of homebuyers aged under 55 turned to family for help in 2023, new research has shown.
Parents, grandparents and other family members provided financial support for 318,400 property purchases last year, the report from Legal & General revealed.
In total, family members lent a staggering £8.1bn to help relatives buy property, up 27% on 2019. If the Bank of Family was a real bank, that would make it the ninth biggest lender in the UK.
Over half (58%) of the support went to first time buyers.
Left behind
Those whose families can’t help financially face being left behind, Legal and General warn. Without a helping hand, people are looking at a future of renting or even living with parents well into adulthood.
If things continue as they are, those without family support will be locked out of home ownership for years to come. Family lending is expected to reach £10bn by 2025, supporting 357,200 property purchases.
Regional differences
The picture varies depending on where you live:
- 67% of buyers in London needed family help
- 22% of buyers in Wales turned to family for financial support
Family sacrifices
The survey also revealed the sacrifices parents, grandparents and other family members are making to help their relatives out:
- 69% say it has negatively affected their own financial situation
- 31% have let adult family members live with them while they save a deposit – nationally, this is equivalent to £131bn of free rent
- Many others provide free childcare
Call for more affordable housing
In a bid to tackle the problem, Legal & General have called for:
- more affordable new homes of the right type in the right areas
- a regional response that recognises the different requirements of different areas
Rebecca Routledge
A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.
Related posts
22 Apr 2024
First-time buyers are increasingly dependent on the ‘Bank of Mum and Dad’ and change is required to help those without support
26 Feb 2024
Under a new scheme being proposed by the government, first time buyers would only need to put down a 1% deposit. Find out if this could help get you on the housing ladder.
21 Feb 2024
Rental prices in the UK have dropped for the third month in a row but they're se to rise again over the coming months. Find out what help's available if you're struggling to cover your rent.
01 Feb 2024
As the Bank of England keeps interest rates at a 16-year record high, find out what to do if you're worried about rising housing costs.