88% of UK adults would consider helping their children or grandchildren buy a property, while 97% say it’s difficult or very difficult for young people to buy a home without family support. 80% believe homeownership is becoming increasingly dependent on family wealth.
However, the fear of running out of money in retirement is the top concern for not giving earlier (37%), ahead of care home costs (16%).
The figures from The Private Office (TPO) follow a survey of 2,126 UK adults aged 45+.
It showed that property purchase is now the single biggest reason for family gifts, cited by half (51%) of those who’ve already given money. That’s more than twice the number who have given money for general living costs (20%) and more than five times those who have gifted for education (8%).
Previous research from Savills last year suggests that the average first-time buyer contribution from family now stands at £55,572, with Barclays figures saying the Bank of Mum and Dad has provided £38.5 billion in support over the past four years.
Helping out earlier
The survey also highlighted a change in attitudes, with 81% saying they believe parents or grandparents should help younger generations financially during their lifetime rather than leaving an inheritance on death. 83% say younger generations are more reliant on family support than previous ones.
86% of those surveyed have already gifted or loaned money to family members, 82% of whom have gifted outright.
Among those who have already gifted, 22% have given over £100,000, and 58% have given more than £20,000, while only 12% gave under £5,000. Of the 14% who have not yet gifted, 40% plan to do so, with outright gifts before death remaining the preferred form (59%) over inheritance via a will (32%).
Daniel Blandford, partner at The Private Office, said: “What this research makes clear is that the Bank of Mum and Dad has also become the Bank of Grandparents too. The figures on housing are particularly striking. When almost all respondents say it’s difficult for young people to buy without family support, that’s no longer a peripheral concern; it’s become a structural feature of the property market.”
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