Support for first time buyers
Published: July 2013
Shelter asked us to explore the assistance that first time buyers receive. We assessed the level and extent of the financial contribution that parents make in order to help first time buyers fund deposits.
- Parents contribute an estimated £2 billion per year, in the form of gifts or loans, to help fund first time buyer deposits.
- Almost 40% of First Time Buyers in the years 2009-13 received assistance from friends or family in order to purchase their first home. The proportion receiving assistance from their parents has increased over time: since 2009 27% of first time home purchases with a mortgage were purchased with parental assistance compared to just 17% in 2005-8.
- Of those first time buyers that received assistance from their parents, the average value of the gift or loan received was £17,000 compared to their average deposit which was £28,000. This means that parents were contributing more than half of the value of the deposit necessary for the purchase.
We developed questions for first-time buyers that were run in an online YouGov panel about their purchases, whether they had recieved any financial help paying the deposit from their parents.
Read the report