Around £30bn is expected to be gifted to first-time buyers in the next three years, according to estate agency group Savills.

Last year £9.4bn was gifted to 164,000 first-time buyers, accounting for a huge 57% of all mortgaged first-time buyers.

Frances McDonald, director of residential research at Savills, said: “While many homebuyers enjoyed record-low interest rates during the early part of the decade, more stringent mortgage requirements, which have been in place since the start of the pandemic, have impacted higher-loan-to-value (LTV) lending, most used by first-time buyers.

“In addition to this, record rental growth and increased mortgage rates, particularly for high-LTV products, have acted as a further blow to first-time buyers’ homeowning aspirations. As a result, a greater proportion have needed support to get onto the housing ladder, and those who were able to take advantage of family support to try and secure a deal at a lower mortgage rate.”

Lower mortgage rates should mean buyers are less reliant on their families, but over half (54%) of mortgaged buyers are expected to use financial gifts this year, falling to 51% in 2025, and 50% in 2026.