One in 12 grandparents use property wealth to support grandchildren

• 79% of grandparents have helped their grandchildren financially and 8% turn to property wealth to fund this support
• Younger grandparents are more likely to turn to property wealth, indicating changing attitudes to using the home to fund family support
• Key reasons to gift to grandchildren include help with day-to-day costs, as well as contributing to one-off big-ticket spends such as holidays or wedding celebrations
• Grandparents in London are most likely to use property wealth to gift to grandchildren, likely due to the region’s higher than average property values

A survey of 2,000 grandparents in the UK, found that younger grandparents (aged 50-64) are twice as likely to use property wealth to gift to grandchildren (10%) vs 65-74 year olds (5%). This indicates the next generation of grandparents are becoming more likely to consider the value of their homes as part of their financial planning. This follows Legal & General’s previous Equity Economy report which found that whilst one in 20 homeowners currently used equity release to fund retirement, it is anticipated to almost double to one in 10 (11%) based on the anticipated plans of younger homeowners.

Grandparents look to provide financial support for a range of reasons, for example, helping in times of a crisis (13%). They are also contributing to their grandchildren’s one-off big-ticket expenses such as holidays (17%) or a wedding (5%). Grandparents are also looking to support younger family members with their homes, either to get onto the property ladder or provide support for rent (5%). The last time Legal & General ran its wide-ranging Bank of Mum and Dad research it found that more than half (56%) of those under the age of 35 received a financial gift to help them step onto the housing ladder. Accessing their own property wealth can be one of the ways that grandparents look to generate the money to provide this help.

Regionally, grandparents in London are most likely to use property wealth to gift to grandchildren (15%), possibly due to the region’s higher than average property values, alongside the significant increase in equity they will have seen over time. Recent statistics from the ONS showed that, at the end of last year, London's average house prices remained the most expensive of any region in the UK, at £543,099 on average4. With LGHF customers releasing 24% from their homes on average, this could see Londoners accessing more than £130,000 from a lifetime mortgage.