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How much does the Bank of Mum Dad lend each year?

New figures show that the Bank of Mum and Dad (BoMaD) is the equivalent of a £5.7bn mortgage lender.

According to Legal & General, 27% of all buyers this years will receive help from friends or family – up from 25% in 2017.

Although one in four property transactions may be dependent on the (BoMaD), the average sums involved have dropped from £21,600 in 2017 to £18,000 in 2018.

In its third annual BoMaD report, Legal and General says that in most cases it’s parents finding the money but it also includes grandparents, other family members and friends.

In the South West:

  • 23% of homeowner received support from family or friends
  • 48% of prospective homeowner expect to receive financial help from family or friends – the highest nationwide
  • An average of £19,360 of help is given – the third highest nationwide


According to Legal & General, the Bank of Mum and Dad will help 316,600 people in 2018 – up from 298,300 in 2017.

Some 43% of those receiving support are aged 35 to 44 while 26% are aged 45 to 54.

The majority of BoMaD ‘lenders’ by far use their own savings to help others. The breakdown is:

  • Cash savings: 71%
  • Funds freed up by downsizing their own home: 20%
  • Pension lump sum: 16%
  • Equity release on own home: 14%
  • Pension income drawndown: 9%
  • Pension income annual annuity: 7%
  • Remortgage own home: 7%
  • Take out a loan: 6%


In conclusion, Legal & General says: “Ultimately, however, we need to tackle the crisis itself, not just alleviate the symptoms.

“The actions of family and friends who fund the Bank of Mum and Dad are laudable, but it’s not a solution to the deep structural problems of the housing market.

“The current arrangement – in which half of young buyers are receiving help to purchase – is not fair on those whose families don’t have the wealth to help them.

“It merely perpetuates the problems we are seeing in declining social mobility.

But it’s also not fair on those giving up their hard-earned comforts in retirement to fund loved ones’ purchases, either; or even those who beneft from that funding – still reliant on parental hand-outs into middle age.

“The key to addressing the housing crisis is no secret: we need to build more homes.

“Over 1.3 million UK households are on council housing waiting lists. More widely, England alone is expected to have 210,000 extra households per year between 2014 and 2039: the number of houses we need just to stand still. We are not building anywhere near this number.

“Government, non-profit making organisations and private enterprise all have a role to play, as will the parents, wider family and aspiring home owners – at least for the foreseeable future.

“But we must all do more to ensure that this burden is fairly shared.”

Opening Doors is encouraging the construction of 20,000 more homes in our council areas by 2033 to deliver the number of houses needed for population growth and economic growth.

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