Fewer first-time buyers relying on “bank of mum and dad”
Fewer first-time buyers are turning to the “bank of mum and dad” to help fund their first homes, new figures from TSB suggest. The proportion of buyers receiving financial gifts from family or friends dropped from 34% in early 2024 to 30% in Q1 2025.
At the same time, the share of all mortgage completions involving first-time buyers increased from 29% to 32%. The most completions were recorded in London and the South East (both 17%), followed by the North West and Scotland, each at 12%.
In Wales, first-time buyer completions made up 4% of the UK total, up slightly by 1% on the year. The average age of first-time buyers in Wales also rose, from 31 to 32, matching the UK-wide increase.
Yorkshire and Humber stood out as the only region where the average first-time buyer was still in their twenties, at 29 years old. All other regions now have an average age in the thirties, with the East Midlands and London highest at 33. The biggest jumps came in the East Midlands and East Anglia, both rising three years year-on-year.
Despite the increase in buyer age, mortgage terms have shortened slightly. The average first-time buyer term is now 31 years, down from 32 a year ago – a change likely influenced by shifting interest rates and affordability.
“As first-time buyers face rising ages and tighter affordability, we’re seeing more turn to short-term solutions like bridging to secure properties quickly while arranging longer-term finance.” – Louis Levine, Bridging Adviser at Bridging Finance
TSB also reported a shift in how customers interact with mortgage services. Over 28,000 video banking appointments took place in 2024, with more than a third (35%) of those happening outside standard working hours, allowing buyers more flexibility in managing applications.
Craig Calder, Secured Lending Director at TSB, said:
“Many first-time buyers are continuing to rely on the bank of mum and dad to put down a deposit on their first home. But while it’s taking them slightly longer to get on the property ladder, they’re taking shorter repayment terms when they do.
“In a competitive mortgage market, first-time buyers should monitor rates and speak to their bank or broker to find the best deal to help them buy their dream home.”
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