The latest figures from the Office of National Statistics show that the buying power of those trying to get onto the housing ladder last year was considerably reduced, with fewer receiving financial help from their families.

In 2023, 45% of FTBs were given some kind of financial help by their families, receiving an average of £56,800. In 2024, that proportion dropped to 40% and, on average, they got nearly 10% less money at £52,700.

Finances impacted

The falls are being blamed on the cost-of-living crisis and rising interest rates, which have heavily impacted family finances.

Despite the more challenging financial landscape, FTB purchase numbers still went up by 13.8% last year to 330,000, according to Yorkshire Building Society.

That was, though, from a low base, as 2023 was a year marked by rising inflation and mortgage rates. As a result, at 290,000, FTB buying activity was at its lowest for a decade. The highest was 400,000 back in 2021.

FTBs have, though, had an exceptionally strong start to 2025, as they rush to complete purchases before Stamp Duty rates go up on April 1st. And, as was reported by The Neg, demand in the sector was up by as much as 31% towards the tail-end of 2024.

Edge of a cliff

What happens after the deadline passes has become the subject of a great deal of speculation by estate agents, with many concerned, as happened at the end of previous Stamp Duty holidays, that buying activity could ‘fall off the edge of a cliff’.