Bank of Mum and Dad: who’s winning?

If you, or your kids, are thinking you might need to dip into the Bank of Mum and Dad to help them buy a home, UK multi-listing site Zoopla has some interesting insights to consider.

According to Zoopla’s analysis, nearly two-thirds of first-time buyers (FTBs) since 2019 received financial support from their families – mostly from their parents.

Three in four homeowners under 30 accepted help from their parents, totalling a massive £58,129 (AU$113,000) on average. The average UK first time buyer deposit is £60,100.

All is not equal, however, with the research also showing that daughters received £52,000 towards their first property, while sons received £65,000, a difference of £13,000.

Another interesting insight is that, on average, those who had financial support from their parents purchased their home six years earlier than those who didn't (33 years compared with 39 years).

Meanwhile, those who received financial help from grandparents (often in the form of an inheritance) were able to purchase their first home aged just 30 on average - nine years sooner than those who had no help.

The most common things first time buyers receive parental help for were:
- the deposit (66 per cent)
- legal fees (24 per cent)
- renovation costs (20 per cent).

While parents are the main financial supporters when it comes to buying a first home, the research shows that one in five FTBs had help from grandparents, 14 per cent from siblings and 10 per cent from aunts and uncles.

Either way, men still were found to get more support than women: £4,800 on average.

Interestingly, less than a quarter of respondents who had parental help had asked for it. Most (60 per cent) said their parents offered to help them when they started looking or expressed an interest, while 17 per cent said their parents offered to help before they even considered it.

But in light relief for parents, seven in ten of those who had parental help said they plan to pay their parents back some or all of the money - although 31 per cent say they don’t intend to.