The Bank of Mum and Dad is so popular it even has its own acronym: BOMAD. But why are first time buyers so reliant on financial support from the older generation, and how much help do they really need? Debbie Clark delves into the statistics to see how trends have changed, and why where you buy will have a huge impact on the level of support you require.
Parents have been helping their children get a foot on the ladder for years and while we would all love to be able to get there without help, the reality is that in 2025 saving for a deposit is a gargantuan task. Any help we can get is therefore gratefully received!
According to the latest analysis from Savills, gifts and loans from the Bank of Mum and Dad (BOMAD) totalled £9.6bn in 2024, with 173,500 first time buyers receiving, on average, a whopping £55,572. This equates to just over half (52%) of all first time buyers, which, although lower than the proportion that received assistance in 2023 (57%), is still higher than every other year since 2012 (53%). Levels of support from the BOMAD have rocketed recently, with assistance paid out since 2021 totalling £38.5bn – 71% more than the previous four years – as a result of a more stringent mortgage market and higher mortgage rates.
“First time buyers are still feeling the impact of higher mortgage rates and tougher lending criteria, meaning that a greater proportion have needed support to get on to the housing ladder, and those who were able to, took advantage of greater family support to try and secure a deal at a lower mortgage rate,” says Lucian Cook, Head of Residential Research at Savills.
How many buyers need assistance, and how much they require, varies dramatically by region. In London, average first time buyer incomes are typically the highest earned nationwide, but this does not translate to higher levels of homeownership, as incomes still struggle to keep pace with rising deposit requirements. “Here, the average deposit as a percentage of income is 138%,” explains Cook. “This is far beyond what most average buyers can save for independently, meaning that it is incredibly difficult for buyers to get a foot on to the ladder without receiving help.”
In the South East, the average deposit as a percentage of income is 98%, and the South West and East of England are not far behind at 94% and 91% respectively. Unsurprisingly, it is buyers in these areas who are most in need of a withdrawal from the BOMAD.
In contrast, parents in the North East can sleep safely in the knowledge that the average deposit as a percentage of income in the region is 56% so their children will likely need less financial support.
Of course, the reality is that not all of us are fortunate to have parents with savings to support us. What about the 48% of buyers who didn’t have that helping hand last year? Many more will have benefited from moving back home in order to save, paying low or no rent to their parents while they focused on building up a deposit. And arguably nothing is quite as motivating as living back at home!
Others still will have no family support at all, but were able to take advantage of Government schemes and developer incentives to help keep their deposits as low as possible.
The relaxation of mortgage stress tests is also expected to make life that little bit less stressful for first time buyers, and possibly their parents too! Cook says, “Relaxation of mortgage stress tests is expected to boost borrowing by lowering the barrier for entry and allowing first time buyers to qualify for larger mortgages. So, although more first time buyer activity may mean more Bank of Mum and Dad assistance, this is likely to be at a lower average cost per first time buyer.”
Homes Available on the Market
BEXHILL-ON-SEA
The Gateway From £212,498 – Based on a 50% share of the full market value of £424,996
Home Reach has partnered with Linden Homes to deliver four bedroom homes at The Gateway in Bexhill-on-Sea. The homes are modern yet full of character, featuring open-plan kitchen/dining spaces and bay-fronted living rooms as well as a spare downstairs room for a study space or playroom at the front of the house. Handily located just a short distance from Bexhill town centre, families can enjoy a wide range of amenities on the doorstep. The development has proven hugely popular, with 95% of homes already sold.
lindenhomes.co.uk/developments/east-sussex/the-gateway-bexhill
01424 541 090
CROWBOROUGH EAST SUSSEX
The Brambles From £315,000
Award-winning housebuilder Elivia Homes is proud to introduce The Brambles, a premium collection of just 26 homes ranging from two bedroom apartments to four bedroom houses. The high-specification homes are thoughtfully designed and benefit from plentiful parking and EV charging points. Set at the heart of the High Weald Area of Outstanding Natural Beauty, the development enjoys a tranquil rural backdrop of mature woodland, and easy access to a selection of country walks and green spaces. Crowborough station is within easy walking distance, and the station provides a direct regular service to London Bridge in just over one hour and London Victoria in 75 minutes.
eliviahomes.co.uk/developments/brambles
01892 646 440
VERWOOD, DORSET
Potters Wood From £182,000
Potters Wood is Pennyfarthing’s flagship development offering a range of superbly designed one and two bedroom apartments, plus two, three and four bedroom semi-detached and detached houses. The development enjoys its own slice of countryside in the designated Suitable Alternative Natural Greenspace (SANG). There is an array of scenery to walk, cycle and relax in, minutes from your front door, while the towns of Ringwood, Ferndown, West Moors, Bournemouth, Fordingbridge, Wimborne Minster and Canford Magna are just a short drive away.
pennyfarthinghomes.co.uk/development/potters-wood-verwood-dorset
01202 403 144
MANCHESTER
L&Q at Victoria Riverside From £63,000 – Based on a 25% share of the full market value of £252,000
Located in Manchester’s Red Bank neighbourhood, L&Q at Victoria Riverside is ideally located within an urban area, offering easy access to the city’s cultural hotspots and just a short walk from Manchester Victoria station. The one and two bedroom apartments at the development form part of the wider Victoria North development which will comprise over 15,000 new homes.
lqhomes.com/victoriariverside
0161 968 0022
Case Study
Damiloa, 38, has secured a new two bedroom apartment at Crescent Gardens, East Croydon. He purchased a 25% share with Latimer, whose generous incentive doubled his £6,000 deposit.
Architect Damiloa is delighted to have a place to call his own after years of sharing homes with family and friends in south east London. After a breakup in 2022, he moved back in with family. Damiloa says, “I paid rent to my mum and just saved, saved, saved. It was really hard but I was desperate to have my own space. “It’s still surreal,” he shares. “Homeownership was always a dream for me. Now that I’m living it, the reality kicks in – this is my space, my sanctuary. That feeling gives you real elation. I keep thinking, wow…How have I managed to get here?”
Having grown up in Hackney and spent time working abroad in Nigeria, Damiloa has always been drawn to vibrant, up-and-coming areas. When the time came to look for a place of his own, staying connected to London was a top priority; buying with Shared Ownership made it possible. Damiloa recalls, “I initially tried looking at homes to buy privately, but the prices were way out of reach, and the areas didn’t feel right. Then I discovered Shared Ownership – it was almost like a gift. It gave me the opportunity to stay in London; in a neighbourhood I actually wanted to live in.”
As an architect, Damiloa had a clear vision of the kind of space he wanted. His apartment, on the sixth floor, ticks all the boxes. He explains, “I get the morning sun on the balcony, and there’s a shared podium garden which is beautifully maintained. It’s one of the best plots in the building – quiet, no background noise, and filled with natural light.” Damiloa also now benefits from a 15-minute commute from East Croydon to London Bridge, and great local amenities.
He describes the process with Latimer as “seamless”. He moved into his new apartment just three months after choosing it and is reaping the benefits. “It’s a psychological thing more than anything,” he says. “To have my own space – that’s something I’ve never achieved before. It’s up there with some of the biggest milestones in my life – like qualifying as an architect 10 years ago.”
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
