A significant number of second-time homeowners in the UK are receiving substantial financial assistance from family and friends, with the average amount reaching £81,451, according to recent data from Barclays. This phenomenon, often referred to as the Bank of Mum and Dad, highlights the ongoing challenges in the housing market, particularly for those looking to upgrade from their first property. The research indicates that approximately one-fifth of second-time homeowners have relied on this form of financial support to facilitate their property purchases. This trend reflects the persistent affordability issues in the UK housing market, where property price growth has outpaced wage increases for many years. The substantial sums being provided by family members underscore the intergenerational wealth transfer that is increasingly becoming necessary for property ownership in the current economic climate. This financial assistance is enabling homeowners to bridge the gap between the sale of their first property and the purchase of a more expensive home, often to accommodate growing families or lifestyle changes. The data also suggests that without this familial support, many would-be home movers might be unable to make the transition to their next property, potentially impacting housing market fluidity and broader economic activity related to home moves.

Category: Real Estate, US Stocks