Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

First-time buyers receive £11bn in family support, Savills finds

More than half of first-time buyers in the UK have received financial support from their families, with a total of £11 billion gifted, according to research by Savills and Insight Advantage. The study found that 53% of first-time buyers were given money by family members to help them onto the property ladder.

The research, which used data from the Regulated Mortgage Survey and the Bank of England, revealed that family support came in various forms, including outright gifts, loans, and inheritance. Outright gifts were the most common, with 32% of first-time buyers receiving financial help in this way, while 16% benefitted from family loans. Inheritance was used by 14% of first-time buyers, a higher proportion than the 12% who used government buying schemes.

Nearly half of first-time buyers reported receiving support from family members other than their parents. Despite this assistance, 64% of first-time buyers still contributed their own savings towards purchasing a home. On average, first-time buyers used £24,261 of their own savings, which accounted for 44% of the typical deposit for a standard first-time buyer property.

The research also highlighted that younger buyers were more likely to rely on family support. Among those aged 20-24, 63% received some form of assistance, compared to 44% of buyers aged 45 and over.

For letting agents and inventory clerks, these findings underline the continued importance of family support in enabling first-time buyers to enter the UK property market. The data suggests that the so-called 'Bank of Mum and Dad' and other family members remain significant contributors to deposit funding, which may influence the profile of new tenants and homeowners entering the market.