Families cash in property gains to help children get on the ladder

Families are increasingly using their property wealth to make the dream of home ownership a reality for loved ones.

Many parents and grandparents have used savings, investments and pensions to help young relatives “get on the ladder”.

Now an increasing number are using the rising value of their homes to come up with the cash through equity release, downsizing or remortgaging.

There is more than £3.5trillion in housing wealth held by the over-55s, it is said, with prices up 3.5 percent in the year to April.

Craig Brown, of Legal & General Home Finance, said: “Property is often one of the most significant financial assets families have. We know many parents and grandparents feel there is no better use of that asset than to provide for the future of their loved ones.”

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Two-fifths of those aged 55 and over have stumped up the cash to help younger family members buy a home. One in five has used their own home to generate the money, with parents and grandparents gifting an average £25,600 to buyers.

A third have allowed adult children to move back home while saving for a deposit.

But Stephen Bacic, of Sandringham Financial Partners, warned that it was ­necessary to take advice before gifting such large sums.

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