New analysis from Barclays has revealed the significant and growing role of the so-called 'Bank of Mum and Dad' in helping established homeowners take their next step on the property ladder.
Family Support Extends Beyond First Homes
The bank's latest Property Insights report shows that a fifth of 'second-steppers' – people moving from their first home to a second property – received financial assistance from friends or family to buy their current residence. The scale of this support is substantial, with the average amount gifted or loaned reaching £81,000.
This trend highlights that family wealth is no longer just a cornerstone for first-time buyers. Intriguingly, the data indicates a pattern of repeated support: half of the second or third-time owners who got help for their present home also received backing for a previous purchase.
A Market in Transition
Barclays' proprietary data, which combines mortgage figures with consumer research, paints a picture of a shifting market. It found that spending on rent and mortgages increased by 3.5 per cent year-on-year in November. Notably, this was the smallest rise since a 2.0 per cent uplift in January, suggesting some easing in housing cost pressures.
The recent Budget announcement appears to be influencing mover behaviour. According to the research, half of those planning a move within the next year had paused their plans in anticipation of the fiscal statement but are now actively resuming them following its publication.
Expert Insight on Affordability and Clarity
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented on the findings. "Our latest data highlights a market in transition," he said. "Though first-time buyers are often thought of as the main beneficiaries of the Bank of Mum and Dad, second-steppers’ reliance on family support underlines the impact of cost-of-living pressures on all sections of the market."
He added an encouraging note for aspiring homeowners: "Even as property prices remain a major challenge for first-time buyers, it is encouraging that improvements to affordability mean more renters are able to access the finance they need to become homeowners."
Julien Lafargue, Chief Market Strategist at Barclays, pointed to the Budget providing much-needed clarity. "With the Budget now published, clarity has improved allowing economic actors to start planning ahead. For the property market, this should mean greater level of activity as we move into the New Year," he stated.
Lafargue also outlined the ongoing hurdles, concluding: "That said, affordability remains a challenge which can be overcome through a combination of lower interest rates, greater housing availability, and financing innovation."
