In Lancaster’s property market, the Bank of Mum and Dad is more influential than ever. For many first-time buyers, parental help isn’t just a boost — it’s the key to unlocking their first home.
Over the past 12 months, Lancaster parents have contributed an impressive £3,949,576 to help their children get on the property ladder. With the average first-time buyer property in Lancaster costing £184,600, and an average deposit of 16% (£29,905), it’s clear how vital this support has become. More than £13,000 of that average deposit is now coming from parents.
This help is often given with love — but it also highlights a growing divide. Those lucky enough to receive financial support are getting ahead, while others are left behind, struggling to save while rents rise.
Nationally, more than half of buyers under 35 rely on help from their parents. And it’s not just one-off gifts — some parents are remortgaging, acting as guarantors or joining joint mortgages. It all depends on one thing: access to wealth.
The term ‘inheritocracy’ has been coined to describe this shift — where life milestones, like buying a home, are increasingly shaped not by earnings, but by inheritance or gifts.
It’s little wonder. The average age of a first-time buyer has hovered between 32 and 34 for two decades. House prices have outpaced wages, rent is high, and deposits are harder to save.
For many Lancaster buyers, the Bank of Mum and Dad isn’t a nice extra — it’s essential.
But here’s the positive news: not everyone needs parental help to buy.
There are still 95% mortgages available, and more lenders are reintroducing options like family offset and springboard mortgages. Some local building societies are even offering 100% loans in specific circumstances.
Government schemes like Lifetime ISAs and shared ownership are still supporting buyers. And while stamp duty relief for first-time buyers has dropped to £300,000, it still provides a financial break.
Meanwhile, there’s a shift happening in Lancaster’s rental market. Renting isn’t seen as a failure anymore — for many, it’s a flexible lifestyle choice while they save, grow their careers or plan longer-term strategies.
But we must acknowledge the frustration felt by those without support. The divide is no longer just generational — it’s within generations, too.
As a local Lancaster estate agent, I see both sides: the joy of parents helping children into homes, and the grit and determination of buyers doing it alone.
If you’re a parent considering helping out, be clear — is it a gift or a loan? Could it impact your retirement? Having honest conversations is key.
And if you’re buying without help — don’t give up. Speak to mortgage brokers, ask questions, explore every option. There are still ways to make it happen.
The Bank of Mum and Dad plays a big part in Lancaster’s property market — but it’s not the solution. It’s a sign of the challenges we face in 2025.
What we really need? More homes. More choice. More affordability.
Thanks for reading
Michelle x