Nearly a third of first-time buyers in the UK now receive financial help from grandparents and other relatives, not just parents, according to Savills research. The shift reflects how difficult it has become for young people to save deposits without family backing, with £11bn of the £22.1bn total first-time buyer housing equity coming from family sources.

The numbers reveal a stark challenge: average deposits of £54,700 require 88% of annual household income, while only 15% of 25-34 year olds have savings exceeding £50,000. London buyers face even steeper barriers, needing £134,200 deposits against £98,100 incomes. Regulatory tightening after 2008 and recent mortgage rate increases have compounded the problem.

Lloyds Banking Group responded by launching a £5,000 minimum deposit mortgage for homes up to £300,000, deliberately excluding those who already received family gifts. Amanda Bryden said many responsible savers still feel excluded from homeownership. The product targets buyers locked out despite managing money well.

This trend signals deeper structural issues in UK housing markets. With 53% of first-time buyers relying on family support nationally, the system increasingly favors those with intergenerational wealth rather than individual financial discipline. Until mortgage rates ease, extended family networks will remain essential for market entry.