For many aspiring homeowners, saving for a deposit has become the single biggest obstacle to buying a property. New government figures suggest that challenge is becoming even more pronounced, with first-time buyers increasingly relying on family support, longer mortgage terms and more creative borrowing structures to bridge the gap.

According to the latest English Housing Survey, the average deposit paid by first-time buyers in England during 2024–25 reached £78,131, while the median deposit stood at £36,500. The figures also reveal that 31% of first-time buyers received financial help from family or friends, underlining the growing importance of intergenerational wealth in helping younger buyers onto the property ladder.

Perhaps even more telling is how borrowers are adapting once they secure a mortgage. Around 62% of first-time buyers now take mortgage terms of 30 years or longer, compared with 47% just five years earlier, reflecting both affordability pressures and changing lender criteria.

Taken together, the figures paint a picture of a housing market where family financial planning is becoming almost as important as mortgage planning itself.

The Deposit Challenge Has Changed

While property prices and mortgage rates often dominate headlines, deposits remain one of the biggest barriers to home ownership.

For many buyers, monthly mortgage repayments may now be manageable, particularly as lenders compete aggressively for lower-risk borrowers. Building a deposit, however, has become significantly harder.

Higher house prices over the past decade, combined with increased rental costs and general living expenses, have made it difficult for many prospective buyers to accumulate substantial savings. Even disciplined savers can find themselves needing many years to build a competitive deposit, particularly in areas with stronger property values.

The latest survey demonstrates just how large that hurdle has become. Although the median deposit of £36,500 better reflects the typical buyer than the average, both figures remain substantial sums that many households would struggle to save independently.

As a result, family wealth is increasingly determining who can buy property—and when.

The Bank of Mum and Dad Has Become Mainstream

Family assistance is no longer confined to wealthy households.

Parents and grandparents are increasingly helping with deposits through gifts, interest-free loans, early inheritance planning or by restructuring their own finances to release capital.

For many families, helping children purchase their first home is viewed as a long-term investment rather than a simple financial gift. Rising property values historically have rewarded earlier entry into the housing market, making assistance today potentially more valuable than waiting many years for a child to save independently.

However, financial support requires careful planning.

Gifted deposits must satisfy lender requirements, anti-money laundering regulations and conveyancing checks. Buyers also need to understand whether funds are genuinely gifted, repayable or intended to represent an ongoing financial interest in the property.

Failing to structure family support correctly can delay mortgage applications or create unexpected legal complications later.

Mortgage Terms Continue To Lengthen

Another notable trend highlighted by the survey is the increasing popularity of longer mortgage terms.

Thirty-year and thirty-five-year mortgages have become increasingly common, particularly among younger buyers seeking to improve affordability.

Extending the mortgage term reduces monthly repayments, allowing borrowers to meet lender affordability assessments while purchasing the property they need rather than compromising significantly on location or size.

The trade-off is straightforward.

Lower monthly payments generally mean paying interest over a longer period, increasing the total borrowing cost if the mortgage remains unchanged throughout its life.

Many borrowers, however, view longer terms as a flexible planning tool rather than a permanent commitment. Provided their circumstances improve, they may overpay, reduce the term later or refinance when appropriate.

Family Support Is Becoming More Sophisticated

Today's family assistance often extends well beyond simply transferring money into a savings account.

Lenders now offer various solutions designed to accommodate family involvement while managing risk appropriately.

Depending on individual circumstances, options may include gifted deposits, Joint Borrower Sole Proprietor (JBSP) mortgages, family-assisted mortgage products, guarantor arrangements or, in some cases, later-life borrowing secured against parental property.

Some parents choose to remortgage their own home to release capital for a deposit. Others may use investments or other assets to provide support while maintaining flexibility over ownership arrangements.

Increasingly, financial advisers, mortgage brokers, solicitors and wealth managers are working together to ensure these transactions are structured efficiently from both lending and estate-planning perspectives.

Affordability Is About More Than Income

The survey also reflects a wider shift in how affordability should be viewed.

Many first-time buyers earn good salaries yet still struggle to satisfy lender affordability assessments because deposit size, loan-to-income limits and property prices all influence borrowing capacity.

This explains why family assistance increasingly focuses not only on reducing the deposit hurdle but also on lowering loan-to-value ratios, improving mortgage pricing and increasing lender choice.

A larger deposit can often unlock lower interest rates, reduce monthly repayments and strengthen an application, creating benefits that extend well beyond simply securing mortgage approval.

Why Professional Advice Matters

As family involvement becomes more common, mortgage advice is becoming increasingly valuable.

Different lenders apply different rules to gifted deposits, family loans, guarantor arrangements and joint borrowing structures. Some lenders are considerably more flexible than others, particularly where complex income, family wealth or multiple borrowers are involved.

Professional advice ensures families understand not only which mortgage products may be available, but also the legal, tax and financial implications of transferring significant sums of money.

For many households, the conversation is no longer simply about buying a property—it is about managing family wealth across generations.