Seven in 10 worry grandchildren will struggle to get on property ladder
Twice as many grandparents (13%) provide regular financial help to their adult grandchildren, compared to those children’s parents (7%), according to OneFamily.
The financial firm said that grandparents are having to step in to help squeezed generations, as official figures now suggest pensioner households are better off than working families.
One in 10 grandparents in the UK have given their adult grandchild a large lump sum at an average of £15,000, with nearly half (42%) of these gifts being used to help their grandchildren on to the property ladder.
A significant 42% admit to being worried about their grandchildren’s financial future, particularly the growing gap between wages and property prices, and seven in 10 grandparents (69%) are concerned that their younger loved ones would find it harder to get on the property ladder than they did themselves.
According to the Office for National Statistics, properties are now 7.6 times the value of an average annual wage compared to half that 20 years ago (3.6 times on average), as property prices have soared. In 1993 the average property sold for £62,333 compared to £247,000 today.
The next most popular reason for grandparents to donate a lump sum was to pay off debts (23%), while those making regular payments to their grandchildren are often covering the ongoing cost of education (25%).
Georgina Smith, managing director of Lifetime Mortgages at OneFamily, said: “For many throughout the UK, grandparents are seen to be the backbone of family life, supporting family members whenever they can, be it financially or by giving up their time for childcare and generally helping out busy working families.
“We expect parents to provide their children with support, but our research highlights just how important the contributions of grandparents are. As the cost of living squeeze continues and buying a property feel more unachievable for members of the younger generation, it seems the nation’s nans and grandads are stepping in.”