The price of operating the Bank of Mom and Dad was disclosed

In some regions of the nation, parents of children purchasing homes will have to pay a lot more to assist their children in moving up the property ladder

Usually, the Bank of Mum and Dad helps homebuyers get on the real estate ladder by nearly doubling their deposits.

The cost of buying a home has increased due to rising house prices and declining stamp duty thresholds.

High mortgage rates may also be a problem for many buyers.

Rich parents are now able to step in and are becoming more involved in real estate transactions.

According to data from UK Finance, about 30% of homebuyers received help from the so-called Bank of Mum and Dad last year.

Buyers are able to climb the property ladder sooner thanks to this.

At an average age of slightly over 30, first-time homebuyers nationwide who receive assistance are able to purchase a property.

The majority of people who buy without assistance, on the other hand, are older than 32.

Additionally, buyers can buy more expensive properties thanks to the assistance.

This is the approximate cost of helping your child move up the property ladder in various locations.

Being the bank of parents comes at a price.

The average unassisted first-time buyer deposit for a property last year was 60,741, according to research by UK Finance.

However, for those receiving assistance, the number nearly doubles to 118,073.

Parents are also able to assist their loved ones in buying more expensive homes because of the larger deposit.

Last year, first-time buyers who received assistance were able to buy an average property worth 317,846 as opposed to 279,381 for those who did not receive assistance.

Although there are regional variances, London has the biggest disparity in deposit amounts. A first-time buyer making an unsupported purchase in the capital in 2024 usually deposits nearly £150,000. In contrast, the average deposit for family assistance recipients was slightly less than £225,000.

Because of this, they were able to buy London properties for 546,972 instead of 519,880.

It should come as no surprise that London was the most costly city in the nation to provide a deposit to a first-time buyer.

On average, parents in the north only had to support deposits totaling 66,176.

Property deposit data table.

In order to unlock transactions further up the chain and preserve overall liquidity, first-time buyers are crucial to the UK housing market, according to James Tatch, head of analytics at UK Finances.

Even though most first-time purchasers are still able to make their purchases on their own, the increasing dependence on family assistance runs the risk of making the housing market even more unequal. To guarantee that everyone has access to homeownership, a well-rounded strategy that tackles supply and affordability concerns is necessary.

These numbers show that much more needs to be done to assist first-time buyers in climbing the property ladder, according to Toby Leek, president of the estate agency trade association NAEA Propertymark.

He stated: "Without parental financial support, homeownership is not a realistic goal for many people under the age of thirty.

Given that interest rates are higher than most people are accustomed to and that the average down payment for a home is currently around 50,000, it is critical that additional assistance be made available and that all UK governments meet their housing goals in order to help balance supply and demand over time.