The UK’s 'Hotel of Mum and Dad' provided the equivalent of £7.6 billion in rent-free accommodation to first-time buyers who bought in 2025, according to research from Savills, underlining the critical role family support continues to play in helping first-time buyers onto the housing ladder.
Savills’ research is based on 254,000 first-time buyers living at home for an average of three years and seven months, with the value of a room calculated at £160 per week.
The survey found that 63% of first-time buyers had benefited from living at home rent free for a period in order to save for a deposit. In London, where affordability pressures are greatest, this rises to 71%.
More than a quarter (27%) said they had lived at home rent free for five years or more, while the average period was three years and seven months.
Lucian Cook, head of residential research at Savills, commented: “For many first-time buyers, the ability to live at home rent free has become one of the most important forms of family support in the journey to homeownership.
“While attention often focuses on direct financial gifts, the value of reduced housing costs over several years of living with family can be just as significant in helping buyers build a deposit.
“Our research shows just how heavily first-time buyers are relying on this support, particularly in higher-value markets such as London, where affordability remains stretched. The significant scale of the ‘Hotel of Mum and Dad’ highlights the extent to which affordability constraints continue to shape the path to homeownership, especially for younger buyers trying to save while facing high rents and wider cost-of-living pressures.”
