House of the rising son (or daughter): the impact of parental wealth on their children's homeownership

Document type
Clarke, Stephen; Wood, John
Resolution Foundation
Date of publication
4 December 2018
Social Policy, Housing and Homelessness, Poverty Alleviation Welfare Benefits and Financial Inclusion, Families
Social welfare
Material type

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Rising unaffordability has led many first-time buyers (FTBs) to rely on family or friends to help with the deposit on their first home. The rise of the so-called Bank of Mum and Dad (BOMAD) is much-discussed but until now there has been little analysis of the strength of the relationship between parental support and people’s chances of becoming homeowners.

Key findings

  • At the age of 30 those without parental property wealth are approximately 60 per cent less likely to be homeowners than people whose parents are homeowners.
  • Those with wealthier parents are more likely to become homeowners. Moving from the median amount of property wealth up to the 75th percentile increases the probability that someone’s children will become a homeowner in a year by over 11 per cent. Moving down to the 25th percentile reduces the probability by approximately 7 per cent.
  • The link between parental wealth and home ownership chances remains strong even after adjusting for the greater home ownership prospects of those with higher earnings and qualifications (both of which are also related to parental wealth).

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