Bank of Mum and Dad: How Family Gifts Help First-Time Buyers

Getting on the property ladder has become a family affair. Parents, and increasingly grandparents, are stepping in with cash so younger relatives can afford a first home. New research suggests the bank of mum and dad is now a fixture of the housing market, and that attitudes to passing on wealth are changing fast.

Most people say buying alone is hard

The Private Office, an independent financial advice firm, surveyed 2,126 UK adults aged 45 and over in May 2026. The headline result is stark. Some 97% said it is difficult or very difficult for young people to buy a home without family help, and 80% believe owning a home depends more and more on family wealth.

Buying a property is now the most common reason for giving money to relatives. Among people who have already gifted, 51% named it, ahead of general living costs (20%) and education (8%). Meanwhile 88% of all those surveyed would think about helping a child or grandchild buy.

Giving now rather than leaving it in a will

Many respondents would rather give during their lifetime than leave an inheritance. 81% said parents or grandparents should help younger generations while they are alive, and 83% said younger people rely on family support more than previous generations did.

• 86% have already gifted or loaned money to family
• 82% gave outright, while 12% made a loan
• Of those who have gifted, 22% gave more than £100,000 and 58% gave more than £20,000
• Only 12% gave less than £5,000

Of the 14% who have not yet given, 40% plan to. Most of those (59%) prefer an outright gift in their lifetime, compared with 32% who would rather use a will.

Good intentions, late timing

Seven in ten (71%) feel help should arrive early, when it can make the biggest difference, and just 8% think wealth should mainly be passed on after death. Reality looks different. Figures from HMRC, obtained by The Private Office through a freedom of information request, show that in 2022/23 people aged 85 and over made up nearly 60% of estates containing lifetime gifts, and accounted for the largest share of the value given.

Tax and security worries

Only about 15% of estates that included gifts paid inheritance tax on them in 2022/23, which suggests most gifts fell within allowances or were exempt. Even so, a badly structured gift can be costly. HMRC has collected an estimated £336 million in inheritance tax over five years from failed gifting arrangements, where the assets were judged not to have been fully given away.

Willingness to give is high, and 64% would feel comfortable handing a large sum to younger relatives during their lifetime. The main brake is fear of running short later on. 37% worry about running out of money in later life, and 16% worry about care home costs.

The bank of mum and dad in context

The findings fit with other industry data. In its 2025 property report, Savills found that 52% of first-time buyers in 2024 had family financial help, up from around 21% roughly two decades earlier. The average contribution was £55,572, and about 173,500 buyers relied on that support. Barclays data shows the Bank of Mum and Dad provided £38.5 billion over four years, a 71% rise on the previous four-year period.

Daniel Blandford of The Private Office put it neatly: for many families the question is less “should I give?” and more “how much can I safely give?” If you are thinking of helping a loved one, it is worth planning carefully so your own retirement stays secure.