The Bank of Gran and Grandad gifted an average of £42,500 to younger relatives to help them get on or move up the property ladder in 2020, said Key.

The equity release business said that this is almost two-thirds of the average first time buyer deposit (£57,278).

Grandparents in London were most generous, gifting a massive £102,826 to grandchildren, while in the South East the Bank of Gran and Grandad gave £61,500 to younger relatives.

The least was given by North West grandparents at £23,467, but more modest house prices in the region meant first time buyers still benefitted from 67% of the average deposit required (£34,347).

Equity release for gifting

Helping younger family members was a key reason for equity release customers unlocking property wealth last year, with £755 million of the £3.4 billion in property wealth released used for gifting.

A large proportion (43%) of these gifts was used for housing deposits by younger family members.

Will Hale, CEO at Key, said: “For many people, these gifts will have been the enabler to them buying their first home and is a perfect example of how intergenerational wealth transfer can deliver positive societal benefits.

“The stamp duty holiday has certainly been a catalyst for more activity in this area but helping family is always a major motivation for older homeowners exploring their equity release options.

“That said, it is vitally important that homeowners get specialist advice if they do decide to use some of the value tied up in their home to help their families. Balancing generosity with their own financial security is vital and a good adviser will help them explore all their options.”