Homeowners are funding 46 first-time buyers every week through equity release.
Analysis by Canada Life Home Finance shows one in 34 equity release customers in 2018 handed some of the finance from their own property to a family member to help get them on the housing ladder.
Accessing property wealth
There were 82,791 equity release customers across the UK in 2018. Equity release allows property owners to access some of the value of their home.
The latest analysis shows a proportion are keen to use their own property wealth to help the younger generation start their own journey to home ownership and eventually property wealth.
Canada Life showed that one in 34 (2.9 percent) of 82,791 equity release customers used that equity to finance a family member in buying a home.
Those figures were up from 2.6 percent in 2017.
Helping loved ones on housing ladder
Alice Watson, of Canada Life Home Finance, said: “The equity release market continues to grow, as more people approaching or in retirement become open to the benefits these products can offer them and their families.
“Rising property prices can cause older homeowners to worry about how their loved ones will get on to the housing ladder.
“Many are increasingly aware of the intergenerational benefits of unlocking their own property wealth to help the younger generation secure their first home.
“As always, it is important that people consult a professional financial advisor before using their equity release in this way as it won’t be suitable for everyone and may affect their tax position.”
Homeward Legal can help
Homeward Legal works with a panel of expert property lawyers across England and Wales who can carry out the essential conveyancing services required when you embark on equity release.
Get a competitive, no-obligation quote instantly for conveyancing services or talk through what you need from a conveyancing solicitor with our experienced team on 0800 038 6699. We’re open seven days.