Grandparents have overtaken other relatives to become the second-most important source of financial help for UK first-time buyers after parents, according to a new study from the property website Zoopla. The research, released this week, found that 12% of first-time buyers who received family assistance in 2024 got their deposit or other funding from a grandparent, up from 8% five years ago.
The shift reflects a broader trend of intergenerational wealth transfer as younger buyers struggle with rising house prices and higher mortgage costs. With the average first-time buyer deposit in the UK now exceeding £53,000, according to Halifax data, many young households are turning beyond their parents for help.
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Why grandparents are stepping in
The study, which surveyed more than 2,000 UK adults who bought their first home in the past three years, found that grandparents are increasingly willing to release equity from their own properties or draw on savings to help grandchildren onto the property ladder. Zoopla’s property expert, Richard Donnell, said the trend is partly driven by older homeowners who have seen significant house price growth over decades.
“Many grandparents own homes that have risen substantially in value, and they are choosing to use that wealth to support their grandchildren at a time when saving for a deposit is harder than it was for previous generations,” Donnell said in the report.
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The Bank of England’s base rate, which has remained at 5.25% since August 2023, has kept mortgage repayments high, further squeezing first-time buyer affordability. Data from the Office for National Statistics shows UK house prices rose 1.4% in the year to February 2025, with the average property costing £282,000.
Intergenerational support widens
Parents remain the most common source of family help, cited by 34% of assisted first-time buyers. But the growing role of grandparents suggests that the traditional two-generation model of family support is expanding. The study also found that 7% of first-time buyers received help from siblings, while 4% relied on friends.
The reliance on extended family is more pronounced in southern England, where house prices are highest. In London, where the average first-time buyer property costs £498,000, nearly one in five assisted buyers received grandparent funding.
Industry experts note that this trend carries risks. Drawing down savings or releasing equity late in life can affect grandparents’ own retirement security. The Financial Conduct Authority advises older homeowners to seek independent financial advice before using equity release to help family members.
Market implications
The growing role of grandparents in the housing market underscores the depth of the affordability challenge for younger generations. Without family help, many first-time buyers would be locked out of homeownership entirely, analysts say. The Resolution Foundation has warned that the UK is experiencing a “housing inheritance boom” that is widening the wealth gap between those with and without property-owning families.
For estate agents and mortgage brokers, the trend means that conversations about family financial planning are becoming a routine part of the home-buying process. Some lenders now offer specific products designed for multi-generational deposits, including guarantor mortgages and family-assisted loans.
As the spring buying season begins, the Zoopla data suggests that the traditional image of the first-time buyer—a young couple saving from their salaries alone—is increasingly outdated. For a growing number, the path to homeownership runs through Grandma and Grandpa.
