Swindon-based Nationwide finds parents are helping children to get house deposit
The new research has been published
Last updated 26th Sep 2026
A new study says more than half of parents charging their adult children rent are giving that money back to help them find their own home.
Research by Swindon-based Nationwide says people living with their parents are paying on average almost £270 a month.
But they say 54% of parents use that money to help them save towards a deposit.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “Behind many first-time buyer success stories are parents quietly helping along the way and it appears they are using new tactics to support their children.
“As saving for a home remains as challenging as ever, our research shows many of Britain’s parents are using rent payments as a way to help their children build a deposit, turning the family home and time spent living at home into a stepping stone towards homeownership.
“However, the findings also serve as a reminder that many aspiring first-time buyers do not have access to family support and continue to face significant challenges in saving for a deposit.”
Aneisha Beveridge, research director at Connells Group, said:
“For many young adults, living at home has become one of the few effective ways to build up a deposit.
“Even when they’re contributing towards household costs, they’re often able to save far more than they would if they were renting independently.
“Rising rents and broader cost-of-living pressures mean that putting aside enough money for a deposit has become increasingly challenging.
“Rent now absorbs a large share of many young adults’ incomes, leaving little room to build meaningful savings.
“As a result, more parents are finding ways to support their children, whether that’s charging a modest rent and returning it later as a lump sum, or simply providing a more affordable place to live while they save.
“While not everyone has access to this kind of family support, staying at home for longer can put would-be first-time buyers in a much stronger financial position in the long term.
“For many, it’s become less of a lifestyle choice and more of a practical stepping stone onto the housing ladder.”
Ian Harris, president of NAEA (National Association of Estate Agents) Propertymark said: “Where an adult child is paying rent, even informal family arrangements can become complicated.
“Being clear about rent, bills, responsibilities and what happens when circumstances change can help avoid misunderstandings and financial tensions.”
Katie Horne, banks relationship manager at Flagstone, said: “High-interest savings accounts increase the value of that rental income and help your child to appreciate the power of compounding interest, even over what might be a relatively short period of time.”