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.

Majority of First-Time Buyers Rely on Living at Home to Save for Deposits

Savills research has found that 63% of first-time buyers who purchased a home in 2025 relied on living rent-free with family at some stage to help save for a deposit. The trend is particularly pronounced in London, where 71% of first-time buyers reported benefitting from living at home rent-free.

According to the survey, conducted by Savills in collaboration with Insight Advantage, the average first-time buyer spent three years and seven months living with family before making their purchase. Additionally, 27% of buyers had lived at home rent-free for five years or more.

Savills estimated that the so-called ‘Hotel of Mum and Dad’ provided the equivalent of £7.6 billion in rent-free accommodation to first-time buyers who bought a home in 2025. The research highlights the increasing importance of family support in helping buyers overcome the rising costs of homeownership, with some buyers facing average costs of £10,000.

For letting agents and inventory clerks, these findings underline the ongoing affordability challenges facing younger renters and buyers, particularly in high-value markets such as London. The reliance on family support may impact demand for rental properties among first-time buyers saving for deposits, as well as the length of tenancies for younger renters.