In a revealing new study, it has come to light that parents in the UK are significantly favouring their sons over their daughters when it comes to financial support for purchasing a first home. According to a recent poll conducted by Zoopla, sons are receiving an average of £13,333 more than their daughters from the so-called "Bank of Mom and Dad" to help them step onto the property ladder.
Parental Contributions to First-Time Buyers
With the ongoing rental crisis making it increasingly difficult for potential buyers to save enough for a property deposit, many are turning to their families for help. Last year alone, parents spent an astonishing £9.4 billion assisting their children in purchasing their first homes. The Zoopla poll reveals that 63% of first-time buyers received financial aid from their families, with parents accounting for a substantial 75% of these contributions. The average loan provided by parents was £58,129, which significantly helps with the average first-time home deposit of around £60,100.
However, the disparity becomes evident when broken down by gender. Sons received an average of £65,004 in financial assistance from their parents, whereas daughters were given or lent an average of £51,671. This £13,333 gap underscores a deeper gender inequality in financial support for home buying.
Allocation of Parental Funds
The funds from parents are primarily used to cover the cost of deposits, with 66% of recipients using the money for this purpose. Additionally, 26% of buyers received help with mortgage payments, while 24% used the funds to cover legal expenses. Another 20% of recipients reported using the financial assistance for renovation costs. Even when financial support comes from other family members, men still receive more, with an average of £4,814 more than women .
Why Are Daughters Receiving Less?
The reasons behind this financial disparity are multifaceted. While some experts speculate that parents may feel they have already supported their daughters through educational or marriage expenses, many women argue that they simply don't require as much financial help as their male counterparts due to better saving habits.
Daniel Copley, Zoopla's consumer specialist, suggests that traditional gender roles may still play a part. "One possible explanation is weddings. In the UK, it is traditional for the bride's family to pay, and the average cost of a UK wedding is currently around £20,000," Copley notes. He also highlights that women are more likely to attend university than men, with parental support often extending to cover educational expenses .
The Broader Context: Gender Pay Gap
The gender disparity in financial support for home buying is reflective of broader issues of gender inequality in the UK. A recent analysis of official government data reveals that women are still paid just 91p for every £1 earned by men. Despite the gender pay gap shrinking to its lowest point since mandatory reporting began in 2017, a significant 78.4% of businesses and public bodies still pay men more than women .
The gap is particularly stark in sectors such as construction, finance and insurance, and education, where the median pay gaps are 22.8%, 21.5%, and 20%, respectively. The public sector, too, sees a persistent gender pay gap of 14.4%, with almost nine-in-10 public sector organisations paying men more than women .
Calls for Action
In light of these findings, campaigners are urging the UK government to take more decisive action to address pay inequities. Proposals include imposing fines on companies that fail to comply with gender pay gap legislation and mandating that businesses implement action plans to close these gaps. Paul Nowak, the general secretary of the Trades Union Congress, stated, "Working women deserve equal pay, but the gender pay gap is still a huge issue. At current rates of progress, it will take more than 20 years to bring men and women's pay into line. That is not right ... companies must now be required to implement action plans to close their pay gaps, and bosses who don't comply with the law should be fined" .
