When I look at my children’s lives compared to mine, it really makes me realise how much things have changed. Back when my generation started our careers, buying a property was a natural milestone, but today the story is very different. In the UK, half of 25-year-olds still live with their parents1. The average age to buy a first home in 1974 was 26, compared with 29 in 2004 and 33 years and 8 months in 20242. One key reason is the required deposit size, with the average in 1975 being 5.36% compared to 20.17% in 20252.
According to the estate agency Savills, in 2024 the average amount given in loans or gifts to help children buy property was £55,572, and 52% of first-time buyers received help from their parents. This was lower than the previous year but higher than every other year since 2013, although still below the 70% recorded in 2009 after the financial crisis3.
On the upside, working patterns are now more flexible, making it easier for people to live further away from their workplace, with just 4.7% of UK employees working from home in 2020 compared to 63% in 20254.
Also looking ahead, in consideration of the proposed Inheritance Tax changes which are set for 2027 regarding unused pensions, I feel there could be an increase in Inheritance tax bills, so helping children with deposits may be a way to reduce these potential liabilities. However, care should be taken, especially when properties are bought with partners, to ensure any funds given are protected in case of a potential couple’s separation.
For those considering how best to help their children onto the property ladder, why not book a no-obligation consultation with us, this could be a great first step.
*1 The Guardian, 16th Dec 2025
*2 Mojo Mortgages
*3 BBC, 14th May 2026
*4 MOL Learn
The content included on this page is based on our understanding of the UK tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances.
