UK first-time buyers turn to Grandpa and Grandma for financial help

June 6, 2026 - 06:02

A new study shows that first-time buyers in the UK are increasingly turning to their grandparents for financial help to get on the property ladder. While parents have long been the go-to source for deposits, researchers have found that relatives such as grandmothers and grandfathers now play a much bigger role.

The report, which looked at how younger people fund their home purchases, found that the "Bank of Mum and Dad" is expanding. More than one in ten first-time buyers now receive money from their grandparents. This shift comes as house prices remain high and saving for a deposit becomes harder for many young adults.

Experts say grandparents are often in a better position to help because they may have paid off their own mortgages and have more savings. Some are also choosing to give money early to see their grandchildren enjoy the benefits, rather than leaving it as an inheritance later.

The study also noted that this trend is not just about cash gifts. Some grandparents are acting as guarantors on loans or helping with legal fees. The average amount given by grandparents is smaller than what parents offer, but it can still make a big difference in a tough housing market.

Critics point out that this growing reliance on family wealth widens the gap between those who can get help and those who cannot. For young people without wealthy relatives, the dream of owning a home is becoming even harder to reach.