The bank of mum and dad has gifted more than £35bn to help their children and grandchildren get on the housing ladder, SunLife has found.

The firm’s second annual ‘Life Well Spent’ report has shown that almost six million (23%) people aged 50 and over have given “significant cash gifts” to family over the past five years, averaging a cash gift of £15,978.

Although many of those surveyed gifted these funds to help cover various costs, including debt, cars and holidays, 20% of those over 50, equivalent to 1.2 million people, gifted this money to help a loved one pay for a deposit on a home purchase.

SunLife revealed that most (91%) helped their own children, while 7% gifted cash to help their grandchildren buy a house.

The research found that the vast majority of over-50s who have financially helped family said that gifting the money resulted in an increase in their own happiness, with 81% of those who gifted money to help with a house deposit stating that it improved their own wellbeing.

Chief executive officer at SunLife, Mark Screeton, said: "Our Life Well Spent report shows that financially supporting family is a priority for many over-50s. And given 27% say that one of their biggest financial worries is how their children and grandchildren are coping financially, is perhaps no surprise that so many want to help out.

"The research shows that over-50s are gifting cash for a range of different reasons, from simply wanting to treat a loved one with an extravagant birthday or Christmas gift, to something more specific, like helping with a house deposit or to buy a car.

"And while financial need is a clear driver for why over 50s are giving so generously, there is another factor at play – happiness."

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