Nearly one in five parents and grandparents who helped a family member buy their first home used their own property wealth to do so, new research1 has shown, raising concerns that some might be leaving themselves short.
Families help out
FTBs are increasingly relying on family members’ support to get on the housing ladder. In total, 42% of parents and grandparents aged over 55 have helped fund a family member’s property purchase.
Parents and grandparents eager to help out are in turn using a combination of their savings (68%), investments (22%) and pension (14%) to find the funding.
Many not seeking advice
The research showed that 18% have used their own home to generate the money, either through equity release, downsizing or re-mortgaging. It also found that 72% of parents and grandparents don’t seek formal advice before making gifts.
Here to help
Making a gift to a family member to buy their first home can be a rewarding way to use your hard-earned money. But it’s important to think about your own needs. We’re here to help you make a balanced decision that’s right for your unique situation.
1L&G and CEBR, 2023
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.