Lenders have called for urgent government action, as a reported 3.5 million household remain locked out of home ownership. And with data showing solo buyers face a wait of almost a decade to save for a deposit, there’s a growing shift in how first-time buyers are getting onto the housing ladder. Alex Mangan, head of sales at Armalytix explores how buyers are no longer simply saving, but assembling increasingly complex, multi-source deposits – and the impact on conveyancers.
In theory, a first-time buyer transaction should be one of the more straightforward files on a conveyancer’s desk. No existing property to sell, often a simpler mortgage structure.
But while the transaction itself might be a bit simpler, the deposit behind it isn’t. First-time buyers are assembling more complex, multi-source deposits than ever before, and much of the resulting friction lands squarely on the conveyancer’s desk.
Armalytix data from the first half of 2026 shows that to fund their deposit, nearly half of first-time buyers (44.4%) now use three or more accounts, and over a quarter of first-time buyers (26.2%) now rely on at least one gifted contribution, averaging £50k.
Looked at over time, that fragmentation isn’t unique to first-time buyers; it’s accelerating across the market as a whole. The share of all buyers with a single account fell from 36.5% to 30.4% in a year, while those with three or more rose by a corresponding margin.
For conveyancing firms already managing increasingly complex compliance requirements with fewer resources, this is becoming the new norm.
The giftor problem
Family support remains crucial to helping first-time buyers get onto the property ladder, as it is reported that 3.5 million households remain locked out of home ownership. As more of that support flows through gifted deposits, each additional giftor brings a separate identity and source-of-funds check that has to be run to the same regulatory standard as the buyer’s own.
That creates a genuinely awkward dynamic for conveyancers. The giftor is not a client of the firm. They sit on the periphery of the transaction, yet due diligence obligations apply as much to them as to the buyer. The conveyancer is left explaining to their own client why checks are needed on their giftor, and then, often indirectly, explaining to the giftor why a straightforward act of generosity now requires evidence of where the money came from.
Giftors are also frequently from an older generation who did not encounter this level of financial scrutiny when they bought their own homes, and who can be understandably resistant to providing it now, with no direct commercial relationship compelling them to cooperate quickly. Historically, that meant solicitors chasing bank statements and explanations manually. It is precisely the kind of fragmented, repeat-request process that leaves buyers and their families frustrated with the wider homebuying experience.
Why first-time buyers look different now
First-time buyers themselves have changed too. They are, by definition, younger, and younger buyers now bank differently. Digital banking platforms have made it trivial to create multiple savings pots, or to hold money across several apps at once. They’re also more financially engaged than often given credit for. The democratisation of investing, stocks and shares ISAs, and a wealth of consumer-facing financial education content, mean a source-of-funds picture for a younger buyer is now far more likely to include some element of investment activity alongside straightforward savings.
None of this is inherently a red flag. But it does mean the source-of-funds narrative conveyancers must verify for a first-time buyer is structurally more complicated than it was even a few years ago, and that complexity is arriving earlier in the buyer’s financial life than processes were built to expect.
What reduces friction
In the field, firms that give clients clear, upfront explanations of why checks are needed, and when, consistently see less friction later in the transaction. There are three things that we’re seeing make the biggest difference.
Lead with communication, not demands: Presenting source-of-funds requirements as a collaborative “here’s what we’ll need and why” conversation at the outset, rather than a series of unexplained requests mid-transaction, measurably changes how buyers and giftors respond.
Start verification earlier: Where multiple accounts or gifted funds are involved, beginning the process straight after instruction rather than mid-transaction avoids duplicated requests and reduces delay.
Build a dedicated giftor journey: Giftors are not the client and shouldn’t be run through a client-designed process. A tailored journey with a single structured request that explains upfront why checks are needed and gathers everything in one sitting is the most effective way to reduce resistance and speed things up.
Beyond the workload
It isn’t simply that conveyancers have more to do. Buyers don’t understand why they’re being asked for the same information multiple times during the property transaction by lenders, brokers, and others.
Conveyancers are being asked to manage increasingly complex compliance requirements with fewer resources to do it. As buyer funding continues to fragment, closing the understanding gap earlier in the process and using technology to reduce duplication and follow-up queries are the most effective levers conveyancers have.
About the author
Alex Mangan is the head of sales at Armalytix, a data intelligence fintech company and a leading provider of digital source of funds checks to the conveyancing and broader property sectors. Since studying Business Management at the University of Surrey, Alex has worked with law firms providing best-in-class technology solutions for 14 years including roles at both BigHand and Thomson Reuters where he was part of the management team for Legal Professionals Europe. Alex has a passion for making people’s lives easier with technology and is dedicated to helping his clients bridge the gap between legacy processes and modern innovation.
