Gender Gap in Parental Housing Support: Sons Favored Over Daughters

Recent data reveals a significant gender disparity in parental financial support for first-time homebuyers in the UK. The so-called "Bank of Mum and Dad" provides sons with an average of £65,004 for housing-related expenses, while daughters receive £51,671, a difference of £13,333.

A survey conducted by Zoopla found that nearly two-thirds of first-time buyers in the past five years received parental assistance, with the average contribution being £58,000. This support covers various expenses, including deposits, legal fees, and renovations. The prevalence of parental aid is even higher among younger buyers, with over three-quarters of those under 30 receiving such support.

The impact of parental financial assistance on homeownership timelines is substantial. Those benefiting from parental support can purchase a home more than six years earlier than their counterparts without such aid. Interestingly, grandparental support can accelerate the process even further, allowing buyers to enter the market nine years sooner on average.

Jane King, a mortgage advisor at Ash Ridge, offered insights into gender dynamics in property purchases. She noted that women often drive these decisions, particularly in couples. King also observed that parents of male children are more likely to provide financial assistance, sometimes motivated by a desire to see their sons move out. In contrast, she found that young women tend to exhibit greater independence in their living arrangements.

The gender disparity in housing support reflects broader economic inequalities. Laura Suter, director of finance at AJ Bell, highlighted the UK's significant gender savings gap, currently at £1.65 trillion. Throughout their lives, women typically accumulate savings of £49,000, considerably less than the average man's £114,000.

These disparities are particularly concerning given the current state of the UK housing market. The average UK house price now exceeds £287,000, according to Land Registry data. An affordability index from Oxford Economics and Skipton Building Society suggests that only 44% of workers earning over £71,250 – approximately twice the national average wage – can afford to buy a house in their current location.

The rental market also presents challenges for aspiring homeowners. In March 2024, the average rent for a one-bedroom accommodation in London was £1,450 per month, with the overall average reaching £2,086, as reported by the Office for National Statistics.

However, there are some positive developments for potential homebuyers. Following the Bank of England's decision to reduce the Bank Rate from 5.25% to 5% earlier this month, mortgage rates have decreased. Some of the most competitive offerings now hover just above 3.8%. According to Moneyfacts, the average two-year fixed residential mortgage rate currently stands at 5.62%, while the average five-year rate is 5.25%.

Daniel Copley, a consumer expert at Zoopla, emphasized the prevalence of family support in first-time home purchases, stating that it has become "very much the default" for those who bought their first home in the past five years.

"It also tends to be the parents of boys that help out, often because they would quite like them 'out of the house'. Girls seem to be much more independant and want to live away from home. I am often told that the help was unexpected and they are really pleased and some get quite moved by what is often a significant financial gift."

This gender disparity in housing support reflects broader societal issues, including the persistent gender pay gap, which stood at 15.4% in the UK in 2021. It also highlights the growing importance of intergenerational wealth transfer in achieving homeownership, particularly in a market where the average age of first-time buyers has risen to 32.

As the UK continues to grapple with housing affordability challenges, the role of parental support in homeownership is likely to remain significant. However, addressing the gender imbalance in this support will be crucial for ensuring equal opportunities in the housing market for both sons and daughters.