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First-time Buyer

Two-thirds of first-time buyers receive family help

Julia Rampen
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Julia Rampen

Nearly two-thirds of first-time buyers receive help from their family when saving for a deposit, according to research from Clydesdale and Yorkshire Banks.

When the lender asked those who had recently bought a home or planned to buy one in the next two years about their deposit, half said the so-called Bank of Mum and Dad was key.

For 28% of these buyers, financial support came in the form of a loan, while a further 22% benefited from a family gift.

Clydesdale and Yorkshire Banks retail director Andrew Pearce said the research underlines the challenges first-time buyers face: “Many people can struggle to save a deposit and our survey highlights that a significant proportion turn to family and friends for financial support.”

A fifth of respondents took six months to a year to save for a deposit, while a quarter took one to two years. However, more than half of first-time buyers took two years or longer.

Those in the Midlands were most likely to receive help from their family, followed by London and the South East.