Nearly one in five UK homeowners who have moved beyond their first property received financial help from friends or family, according to Barclays’ latest Property Insights report. The study found that ‘second-steppers’—those buying their second or third home—received an average of £81,451 in support, while first-time buyers received £76,239 on average. Almost half of those who got help for a subsequent home had also been supported when purchasing their first property.
The most common forms of assistance included lump sum gifts from parents (39%), inheritance (27%), and loans from family or friends (13%). Among renters considering buying a home, more than half said they would find it impossible without an inheritance or loan from a family member.
Sixteen percent of renters plan to buy within the next year, but two-thirds cite high property prices as a major obstacle. Many also struggle with increasing savings targets as house prices rise. However, 40% believe renting currently costs more than paying a mortgage for a similar property. Spending on rent and mortgages increased by 3.5% year-on-year in November—the smallest annual increase since January’s 2% rise.
Consumer confidence in the housing market showed slight improvement after the Autumn Budget, rising to 26% in November from an annual low of 24% in October. Most adults reported no change in confidence following the Budget announcement; however, just over a quarter felt less confident about their ability to buy a home. Half of those planning to move within the next year had paused their plans before the Budget but are now proceeding.
Among mortgage holders, nearly one in five have either remortgaged this year or expect to do so next year. Of those remortgaging, 62% anticipate higher monthly payments and many are looking for ways to cut discretionary spending and keep monthly costs down.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: “Our latest data highlights a market in transition. 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.
“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, added: “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.
“That said, affordability remains a challenge which can be overcome through a combination of lower interest rates, greater housing availability, and financing innovation.”
Barclays offers Mortgage Boost—a product allowing family and friends’ income contributions without requiring them to provide lump sums—to help prospective buyers borrow more by joining mortgages without taking ownership stakes.
Data cited in this report comes from analysis of Barclays current account transactions related to mortgage and rental payments between mid-October and mid-November each year; it includes payments made by customers both inside and outside Barclays. Consumer research was conducted by Opinium Research between late November and mid-December with 2,000 respondents per round representing various demographics across age groups and regions.