Quarter of grandparents helping younger generation onto property ladder

One quarter (25%) of grandparents currently plan to help or have already helped their grandchildren become first-time buyers, a new study from Aviva has indicated.

Aviva’s study suggested there is a growing tendency among the older generation in the UK to use the wealth held in their property to help younger generations become first-time buyers.

According to the research, based on findings among 1507 general consumers over the age of 45, the typical amount given to grandchildren is now £31,398.63 – a figure 25% higher than in 2016.

The study suggested that the average age people pay their mortgage off is 51, with homeowners, particularly those who are mortgage-free, planning to use investments, as well as their property, to help other family members move onto the property ladder.

Aviva stated that 5% of respondents say they have already helped their grandchildren become first-time buyers, with a further 20% indicating they are definitely or probably going to. This proportion has shifted upwards in the last six years. In 2016, when Aviva conducted similar research, 3% had helped their grandchildren to get onto the property ladder while 14% were intending to.

“It’s no secret that many younger people tend to encounter difficulties when seeking to enter the housing market for the first time,” said Aviva Equity Release MD, Matt McGill. “The degree to which existing homeowners are now prepared to use their own wealth to help their other family members onto the property ladder has increased notably over the last six years.

“Increasingly, older homeowners are a source of funding for their children and their grandchildren , and are using a greater variety of means to help younger family members out.”

McGill added: “It is becoming increasingly accepted that wealth held in property should be considered part of someone’s total assets, and can be used for a variety of purposes – including to help younger family members buy a home like their parents and grandparents did.”

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