London-based mortgage broker AS Financial has reported a notable increase in first-time buyer activity, attributing the surge to growing reliance on the “Bank of Mum and Dad.”

The firm has seen a significant uptick in young buyers entering the market with family financial support.

Mortgage Soup reported last week how family financial support was playing an increasingly decisive role in shaping the homeownership prospects of first-time buyers exposing a widening affordability gap in the UK housing market.

Data from UK Finance revealed a sharp difference in age, income, deposit size and purchase price between first-time buyers who receive financial help from family and those who do not.

FAMILY ASSISTANCE

And national data shows that over half of first-time buyers received assistance from family in 2023, with parental contributions averaging £55,572.

The end of government schemes like Help to Buy and rising property prices, especially in London, have made family support increasingly crucial for prospective buyers.

AS Financial offers tailored services to first-time buyers, including guidance on securing mortgages with as little as a £5,000 deposit.

And it’s an approach that has proved a hit with younger clients navigating the challenges of high loan-to-value mortgages and stringent lending criteria.

PIVOTAL ROLE

Marcel Istace, operations director at AS Financial, said: “As the housing market continues to evolve, AS Financial remains committed to supporting first-time buyers, recognising the pivotal role family assistance plays in helping them achieve homeownership.”

“First-time buyers are the engine of the property market – they drive demand from the bottom up.”

Istace added: “Without them, chains stall, transactions slow and lenders lose a vital stream of new business.

“They bring fresh capital, stimulate housebuilding and support long-term lending models.

“For brokers and banks alike, they’re not just customers – they’re tomorrow’s remortgages, upscalers and investors. Their confidence keeps the market fluid and forward-looking. In short, first-time buyers don’t just enter the market – they sustain it.”

Mortgage Soup also revealed last week how Skipton Building Society had launched a new mortgage aimed exclusively at first-time buyers, offering a three-month break from repayments in a bid to ease the financial burden of getting on the property ladder.