'Bank of mum and dad is back': How Leeds parents are helping their children get onto the property ladder

The bank of Mum and Dad is firmly back, with more people across Leeds now borrowing from their parents to take their first step onto the property ladder.

But it’s not just simply borrowing money that first-time buyers are now doing, they’re using their parents’ help in more innovative ways to get the deposits they need for their first homes.

Below, Mark Manning, managing director of estate agents Manning Stainton, shares some of the most popular ways parents in Leeds are now helping their children to buy their first property:

Loans and gifts

“One of the most common ways parents help their children get onto the property ladder is by lending or gifting them money to put towards a deposit,” Mr Manning said.

“Many of the first-time buyers we support across the city have had some form of parental support, whether as a loan, a gift, or a combination of both, which marries with national data from TSB that shows 68% of first-time buyers relied on financial help from their parents when buying last year. In many cases, we find parents have been putting money aside for their children since early an early age and choose to gift it to them when they are ready to buy their first home.”

“For those that borrow money from their parents, it’s often on an interest-free basis and with flexible repayment terms, making it a far more affordable option than taking out a personal loan.”

Gifted equity

“Gifted equity is becoming increasingly popular amongst parents who own one or more properties and we’re seeing it happen much more regularly than a few years ago,” Mark said. “It involves selling a home to their child at below market value, with the discount acting as the deposit. For example, if a property is worth £200,000 but sold for £180,000, the £20,000 difference can be used as equity.

“Many lenders now accept this arrangement, making it an attractive option for families who want to help their children without gifting them cash.”

Living at home longer to save

More young people are choosing to stay in their family home well into their twenties and early thirties to give them time to save enough for a deposit, and many of the first timers Manning Stainton help have also moved back in with parents ahead of buying so they can save up.

Mark said: “Again, this reflects national trends, with data from TSB highlighting that 80% of first-time buyers moved back in with parents ahead of taking their first step onto the ladder in 2025.

“Living with parents is often on a rent free or low-rent basis, so it allows first-time buyers to build up their savings much more quickly than if they were renting their own place.

“While this option often requires patience and compromise from all parties, it remains one of the most popular and effective ways young people can financially prepare for buying their first home.”

Acting as a guarantors

“Some parents are choosing to act as guarantors on their child’s mortgage, using their own income or property as security,” Mark said.

“This can help first-time buyers access better mortgage rates or borrow a higher amount than they could on their own. However, it does come with risks, as parents may be liable if mortgage repayments are missed.

“I’d recommend getting professional financial advice before entering into any guarantor arrangement, but if all is well, it offers an excellent choice for parents who want to help their child buy their first home, but who may not have the means, or want to, lend or gift them money.”