For many parents and grandparents, helping loved ones achieve major life milestones is one of the most meaningful uses of their wealth. Whether it's contributing towards a first home, supporting higher education or helping through a difficult period, financial support can make a lasting difference.
In recent years, this support has become increasingly common. According to Savills, more than 52% of first-time buyers received financial help from family in 2024, with gifts and loans from the "Bank of Mum and Dad" totalling £9.6 billion. The average recipient received more than £55,000 in assistance.
Why more families are providing support
For younger generations, the path to financial independence can look very different from that experienced by their parents.
Higher property prices, larger deposit requirements and the rising cost of living have made it harder for many people to get onto the property ladder. Research shows that family support can help first-time buyers purchase homes sooner and secure larger deposits.
As a result, many families are stepping in to help fund major life events, from buying a first home to starting a business or raising a family.
Don’t forget your own future
Whilst helping family can be incredibly rewarding, it's important not to overlook your own financial future.
Retirement may last several decades, and future healthcare needs, care costs and inflation can all place demands on your wealth over time. Before making significant gifts, it's worth considering:
- Your long-term income needs
- Emergency savings
- Future lifestyle goals
- Potential care costs
- The impact of inflation
Supporting family is often most effective when it comes from a position of financial security.
Finding the right balance
There is no single answer to how much support is appropriate. Every family's circumstances, priorities and values are different.
The key is ensuring that financial assistance aligns with your own long-term plans while helping those you care about achieve their goals.
After all, wealth is about more than what you accumulate. It's about the opportunities you create, the values you share and the legacy you leave behind.
Sources
Savills, UK Finance, Legal and general
Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.
