Huge increase in home buyers being gifted £100k or more for deposits as families look to

Britain is in the midst of an unprecedented wealth transfer from baby boomers to younger generations – and house deposits are increasingly the vehicle of choice.

In the first three months of 2025, approximately 30,788 gifted house deposits of £100,000 or more were recorded, according to data from Twenty7tec.

It says of all the buyers helped with gifted deposits last year, 29 per cent of them were given £100,000 of more.

The higher the price paid for a property, the more likely a buyer is to have been helped by family.

For example, in 2024, one in two buyers – who received help when purchasing a home worth between £300,000 and £400,000 – was given £100,000 or more. 

For those buying homes worth £1 million or more, 99 per cent of those receiving family help were gifted £100,000 or more. 

The Bank of Mum and Dad: In the first three months of 2025, approximately 30,788 gifted deposits of £100,000 or more were recorded

This year, there has been a noticeable increase in £100,000 gifts for certain price bands, according to Twenty7tec.

It says those paying between £400,000 and £500,000 and £900,000 to £1million stand out, with more buyers receiving larger deposits from family than in 2024. 

More than half of buyers who received gifts to buy homes worth between £300,000 and £400,000 this year received £100,000 or more, up from 47 per cent last year.

For those buying homes worth between £900,000 and £1million, 99.3 per cent of those receiving support, were gifted £100,000 or more, up from 98 per cent last year.

Jo Eccles, founder and managing director of prime central London buying agency, Eccord, says the Bank of Mum and Dad are currently a dominant force driving the London market.

‘The Bank of Mum and Dad account for at least one third of property transactions under £5 million,’ said Eccles.

‘We’ve worked with many parents helping their children and grandchildren with deposits, and the grown-up child would often put a mortgage in place for the rest, but now we’re seeing more and more cases of parents buying properties outright.’

Why are there so many £100,000+ deposit gifts?

Many parents and grandparents recognise that higher rents and house prices are making it difficult for the younger generation to get on the ladder independently these days, according to Mark Harris, chief executive of mortgage broker SPF Private Clients.

‘Families are gifting more because rising house prices and rents are making it increasingly difficult for first-time buyers to save a deposit big enough to enable them to get on the housing ladder,’ he says.

‘The boomer generation appreciate that they have done well out of property and want to help their offspring by releasing some of the equity they have built up in their homes.’

However, while many parents and grandparents aspire to help younger family members onto the property ladder, there is more than generosity at play. 

Passing on wealth without incurring an inheritance tax bill has become a real concern for many families, with inheritance tax thresholds frozen until at least 2030.

Inheritance tax receipts were £8.2billion from April 2024 to March 2025, according to the latest figures from HMRC, representing an increase of £0.8 billion compared with the same period during the previous year. 

‘This isn’t just generosity, it’s strategic inheritance tax planning,’ adds buying agent, Jo Eccles.

‘Families have long given a helping hand where they can, but now because of changes to the way pensions are taxed, their mindset has shifted and we’re seeing them do it much earlier – in some cases while they’re only themselves in their 60s and early 70s – and gifting much larger amounts.

‘It’s also become much more socially acceptable to have a pre-nup or cohabitation agreement in place to protect the money if the child’s relationship breaks down, so parents feel more comfortable making a substantial gift.’

From April 2027, pensions will fall into peoples estates for inheritance tax purposes.

‘If this pushes estates above £2million, it can take someone from having a low inheritance tax exposure to a high one,’ says Laura Hayward, tax Partner at professional services group S&W.

‘This is because the taper for the residence nil rate band kicks in for estates over £2 million, which means you face the double whammy of inheritance tax on your pension while also losing some or all your residence nil rate band.’

With pensions soon to become no longer exempt from inheritance tax, this could see even more cash being gifted towards house purchases. 

Rob Houghton, founder and chief executive of reallymoving, the comparison site for home movers says: ‘When considering whether or not to gift money for a deposit, for those with wealth to pass down, it’s now a question of why wait?’

‘Pensions used to be a great way to pass on wealth tax-free but now that ship has sailed and at the same time, house prices remain a long way out of reach for many younger people without parental help. 

‘Gifting a deposit is a win-win, and by doing it sooner rather than later, parents get the pleasure of seeing their children and grandchildren benefit from that inheritance.’