One in 4 grandparents give financial assistance to first-time buyers

A quarter of grandparents have helped – or plan to help – their grandchildren become first-time buyers, new research finds

A quarter of grandparents have helped – or plan to help – their grandchildren become first-time buyers, according to a new study.

The proportion of grandparents helping financially has risen by a third since 2016, when the survey was last conducted by insurer Aviva.

The average amount given by grandparents has also risen sharply to around £31,000, up 25% from six years ago.

Convenient: Grandparents who help their grandchildren buy property usually do so using their own savings or unlocking value from their own home

The average deposit required by first-time buyers is now £33,000, according to online broker Mojo Mortgages. But saving for a deposit is becoming increasingly difficult as the cost of living eats away at people’s finances. Rental costs are rising at the fastest rate in 15 years, while average rents rose by £66 a month in the second quarter to £870.

Grandparents who help their grandchildren buy property typically do so using their own savings or unlocking value from their own home, Aviva says.

The number of grandparents using equity release has doubled in the past six years. But millions of retirees are unable to help their children or grandchildren financially because they themselves are struggling with skyrocketing bills.

More than a third of people in their late 50s and early 60s are having to delay retirement by at least a year due to the cost of living crisis, according to insurer Legal & General.

One in ten think they will never be in a financial position to retire. Matt McGill, Managing Director of Aviva Equity Release, says: “Many young people tend to struggle when looking to enter the housing market. The extent to which existing homeowners are now willing to use their own wealth to help family members access homeownership has increased dramatically.

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