Fewer buyers turn to Bank of Mum and Dad

The so-called Bank of Mum and Dad helped fewer buyers snap up a home last year, with 28% of first-time buyers receiving help from family or friends in the 2019/20 financial year, down from 34% the year before and 39% three years ago. The English Housing Survey, a national snapshot by the Ministry of Housing, Communities and Local Government, found that despite the decline in support, the number of first-time buyers in England increased 100,000 from 2018/19 to 827,000 in 2019/20. The average deposit was up to £42,433 from £42,361 the previous year. Analysts say that this trend, which preceded the coronavirus pandemic, can be explained by the fact that many parents were feeling poorer and therefore more reluctant to help their adult children. Some 62% of first-time buyers were from the top two income brackets, the survey found.

The Times (02/01/2021)