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