My parents live in a rich, comfortable bubble but refuse to help me buy a house. This is the dilemma facing 38-year-old Kitty from Putney, London. She grew up in a big detached house in Surrey, attended a prestigious boarding school, and had her university fees paid by her parents. Now, despite having a good job, she cannot save for a deposit and rents with housemates. Her parents, still wealthy, insist she should stand on her own two feet.
The Generational Divide
The gap between Baby Boomers and Millennials has never been wider. Older generations enjoy unprecedented property and pension wealth, while younger people face stagnant wages, soaring rents, and high house prices. According to the Resolution Foundation's Intergenerational Audit, Millennials are the first generation in modern history to have average incomes no higher than the previous generation at the same age.
Economic Realities
Since the 2008 financial crisis, real wage growth in the UK has been weak. When Kitty's parents bought their home, it likely cost three to four times their earnings. Today, average house prices in England are almost eight times the average salary, based on Office for National Statistics data for 2025. The numbers make homeownership seem out of reach for many.
Parents' Perspective
While Baby Boomers benefited from a property boom, they also endured economic turbulence in the 1970s and 1980s, including inflation of 24%, high interest rates, and mass redundancies. Kitty's parents may feel they have already given her a strong start through private education and a comfortable upbringing. From their viewpoint, it is now her responsibility to build her own life.
The Bank of Mum and Dad
Despite the parents' stance, parental financial help has become a structural pillar of the housing market. According to Savills, parental gifts and loans totalled £9.6 billion in 2024, with around half of first-time buyers receiving family assistance, averaging over £50,000. Kitty could present her parents with data on house price-to-earnings ratios and explain tax-efficient ways to help, such as annual gifts of up to £3,000 per parent tax-free. Larger gifts become inheritance tax-free if the parents live seven years after the transfer.
A Path Forward
If Kitty's parents remain unwilling to help, she must reassess her options. Realistic goals and alternative strategies may be necessary. However, there is a silver lining: the Resolution Foundation predicts that Millennials will benefit from the largest inheritance boom of any post-war generation. Life is not static, and circumstances can change over time.
