The number of parents providing support for their children with house deposits has increased by 46% over the past five years, Twenty7tec has revealed.

The adviser tech provider found that family wealth is playing a "bigger role than ever" in home purchases, with the Bank of Mum and Dad now funding over 10% of buyer deposits, up to 6.9% in 2020.

Although there has been some focus on first-time buyers, Twenty7tec said that parents are "increasingly stepping in" to help those further along in their property journey, with parental contributions for existing homeowners rising 39%, from 2.19% to 3.1% between 2020 and 2025.

Over the same period, the average house price has risen by 7%, from £251,500 to £268,000, while consumer prices have increased by 24%, showing the financial squeeze on buyers.

Twenty7tec said that it could be that "those who cannot reap the benefits of generational wealth could be pushed out of homeownership altogether", as rising house prices and affordability pressures make parental support a "key factor" in securing a home.

Furthermore, the upcoming stamp duty changes next month intensify these concerns, with the new rules set to make “affordability an even greater challenge.”

Director at Twenty7tec, Nathan Reilly, said: "For many, the ability to buy a home is no longer about earnings alone but about the financial support they can access from their families. As affordability pressures continue to mount, we are noticing new ways in which families are passing down wealth. This could be in the shape of early inheritance planning to more structured financial transfers – rather than simply gifting deposits.

“At the same time, many first-time buyers are being forced to explore alternative mortgage solutions as they struggle to save enough. This has never been more prevalent than in high-cost areas such as London and the South East. Whether this is due to affordability pressures on families themselves or a strategic shift in financial planning, it raises serious questions about who will be able to buy in the years ahead."

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