Bank of Gran and Grandad gifts almost a million pounds a day
Older homeowners have gifted £323.9m in housing equity to help younger family members onto or up the property ladder since the start of the Stamp Duty holiday last July, said Key.
The equity release adviser analysed its own data and found that the average amount gifted for house deposits each month of the Stamp Duty holiday so far is around £27m or £51,595 per borrower, peaking at £40.6m during last September.
Will Hale, CEO at Key, said: “With the Stamp Duty Holiday giving people an unprecedented opportunity to climb onto the property ladder, the Bank of Gran and Grandad has stepped up to help finance it.
“This type of inter-generational generosity is more common than you think and even before this change, one in five equity release customers were using their housing equity to support younger family members.
“While the stamp duty holiday has undoubtedly stimulated some additional demand, we anticipate that older people will continue to want to provide this type of ‘living inheritance’ for years to come.
“A desire that it is even easier to fulfil with the flexible later life lending products that are available in today’s market. However, it is important that people’s generosity doesn’t leave them financially exposed and therefore, as always, specialist advice is vital so that all options are properly considered.”