One in five second-steppers needed family or friends’ help to buy home

Financial support from family and friends continues to play a significant role in UK homeownership, extending beyond first-time buyers to those moving up the property ladder, according to Barclays’ latest Property Insights report.

The research shows that 19% of homeowners received financial help to purchase their current property. This rises to 30% among first-time buyers and 20% among so-called “second steppers”, with average contributions of £76,239 and £81,451 respectively. Barclays also found that financial assistance is often repeated, with 27% of homeowners who received help when buying a second or third property also having received support for their first purchase.

The report also notes that while renters continue to face challenges in saving for deposits, they are less discouraged by mortgage costs. Consumer confidence showed modest signs of improvement following the Autumn Budget, as some prospective buyers resumed plans that had previously been put on hold.

Among those who received financial help, the most common form of support was a lump sum gift from parents, cited by 39%. This was followed by inheritance at 27% and loans from family or friends at 13%. For renters, reliance on family support remains significant, with 52% saying they would be unable to buy a home without an inheritance or loan from a relative.

Despite these challenges, 16% of renters say they plan to buy a property within the next year. However, affordability remains a key barrier, with 68% of prospective buyers citing house prices as an obstacle. Nearly six in 10 renters (59%) also report difficulty keeping up with rising savings targets as prices increase. Mortgage costs appear to be a lesser concern, with 40% saying it currently costs more to rent than to service a mortgage on a comparable home. This comes as growth in rent and mortgage spending slowed to 3.5% year-on-year in November, the lowest rate of increase since January.

Consumer confidence in the housing market showed a slight improvement in November, rising to 26% from an annual low of 24% in October. Following the Autumn Budget, 58% of UK adults said their confidence in their ability to buy a home was unchanged, while 27% reported a decline. Half of those planning to move within the next year said they had delayed their plans ahead of the Budget but have since resumed them.

Among existing homeowners, 17% of mortgage holders said they had either remortgaged during 2025 or expect to do so in 2026. Of those remortgaging, 58% anticipate higher monthly payments. In response, 37% of homeowners said they are reviewing their household budgets to find savings, while 34% plan to reduce discretionary spending. When securing a new deal, keeping monthly payments low was the main priority for 35%, followed by securing the lowest available rate for 29%. A further 24% said they would prefer to remain with their current lender rather than switch.

Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Our latest data highlights a market in transition. Though first-time buyers are often thought of as the main beneficiaries of the Bank of Mum and Dad, second-steppers’ reliance on family support underlines the impact of cost-of-living pressures on all sections of the market.

“Even as property prices remain a major challenge for first-time buyers, it is encouraging that improvements to affordability mean more renters are able to access the finance they need to become homeowners.”

Julien Lafargue, chief market strategist at Barclays, added: “With the Budget now published, clarity has improved allowing economic actors to start planning ahead. For the property market, this should mean greater level of activity as we move into the New Year.

“That said, affordability remains a challenge which can be overcome through a combination of lower interest rates, greater housing availability, and financing innovation.”

Data provided by Barclays

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