GENEROUS PARENTS AND GRANDPARENTS ARE TURNING TO THEIR PROPERTY WEALTH<\/p>\n
As the housing market becomes increasingly competitive, family contributions are crucial in\u00a0helping younger buyers secure their dream homes. Recent research highlights that generous parents\u00a0and grandparents are turning to their property wealth to offer this vital support.<\/p>\n
Often dubbed the \u2018Bank of Family\u2019, it is\u00a0anticipated to be pivotal in 42% of UK property\u00a0purchases for those under 55 in the coming\u00a0year[1]<\/span>. This translates to an impressive 335,000\u00a0housing transactions in 2024 alone, marking\u00a0the highest level of family-supported purchases\u00a0since tracking began in 2016.<\/p>\n SUPPORTING THE NEXT GENERATION<\/p>\n The financial help extended by family members\u00a0is predicted to rise significantly, with gifts from\u00a0parents and grandparents expected to reach\u00a0\u00a311.3 billion by 2026. To fund these generous\u00a0contributions, many are opting to downsize\u00a0their homes, release equity or re-mortgage their\u00a0properties. Specifically, 19% of those providing\u00a0financial support are doing so through these\u00a0avenues, with 9% utilising equity release in the\u00a0first half of this year alone.<\/p>\n Despite the good intentions behind these\u00a0financial gifts, there is an alarming trend of not\u00a0seeking\u00a0 professional advice.<\/p>\n 74% of parents and\u00a0grandparents who made a financial gift did not\u00a0obtain professional advice before proceeding,\u00a0which could have long-term financial implications.<\/p>\n VALUE OF PROFESSIONAL ADVICE<\/p>\n Property wealth remains one of the most\u00a0significant assets for families across the UK,\u00a0making it a natural resource for financial support.\u00a0However, individuals making substantial\u00a0financial gifts should seek professional advice\u00a0to ensure they are making informed decisions.<\/p>\n While products such as lifetime mortgages automatically include specialist advice, this is only\u00a0sometimes the case for other financial gifts, which\u00a0can lead to unanticipated financial strain.<\/p>\n As equity release becomes more\u00a0mainstream, more people may consider it a\u00a0viable option for supporting their loved ones.<\/p>\n The \u2018Bank of Family\u2019 is set to have a busier\u00a0year than ever, and with this comes the need\u00a0for prudence and careful planning. The \u2018Bank\u00a0of Family\u2019 is becoming a significant player in\u00a0the UK housing market, supporting an evergrowing\u00a0number of property transactions.<\/p>\n CONSIDERING USING YOUR PROPERTY\u00a0WEALTH TO SUPPORT FAMILY MEMBERS?<\/p>\n Seeking professional financial advice cannot be\u00a0overstated, ensuring that generous contributions are\u00a0made with both heart and mind. If you are considering\u00a0using your property wealth to support family members\u00a0in purchasing a home and require further information\u00a0on making the most informed financial decisions,\u00a0please contact us.<\/p>\n <\/p>\n <\/p>\n Source data:\u00a0[1] Bank of Family methodology research was compiled using\u00a0primary survey data as well as existing data sources relating to\u00a0the housing market. Survey work carried out by YouGov \u2013 the\u00a0total sample size 2,017 adults aged 55+ with children or\u00a0grandchildren aged 16+. Survey undertaken between 26 June\u00a0\u2013 2 July 2024<\/p>\n THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL\u00a0ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX\u00a0TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES\u00a0OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE\u00a0FUTURE.<\/p>\n FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.<\/p>\n","protected":false},"excerpt":{"rendered":" GENEROUS PARENTS AND GRANDPARENTS ARE TURNING TO THEIR PROPERTY WEALTH As the housing market becomes increasingly competitive, family contributions are crucial in helping younger buyers secure their dream homes. Recent research highlights that generous parents and grandparents are turning to their property wealth to offer this vital support. Often dubbed the ‘Bank of Family’, it is anticipated to be pivotal in 42% of…<\/p>\n