You are here: Home - Mortgages - First Time Buyer - News -

Grandparents gift £1m of property wealth a day during stamp duty holiday

Written by:
Grandparents have gifted nearly £1m of their own housing equity a day to younger family members during the stamp duty holiday.

The ‘bank of Gran and Grandad’ has given £323.9m for house deposits using equity release since the stamp duty holiday started in July 2020.

Chancellor Rishi Sunak announced the tax break last summer to help homebuyers financially hit because of the Covid pandemic.

The temporary rule change means buyers do not have to pay any tax on the first £500,000 of a property price.

Data from adviser firm Key shows the pay-outs for house deposits peaked in September last year at £40.6m and hit a low of £13.16m in February this year in the run-up to the original tax break deadline of 31 March. The deadline has been extended to the end of June.

Key said the average amount gifted was £51,595.

Will Hale, chief executive of Key, said: “With the stamp duty holiday giving people an unprecedented opportunity to climb onto the property ladder, the bank of Gran and Grandad has stepped up to help finance it.  This type of inter-generational generosity is more common than you think and even before this change, one in five equity release customers were using their housing equity to support younger family members.

“While the stamp duty holiday has undoubtedly stimulated some additional demand, we anticipate that older people will continue to want to provide this type of ‘living inheritance’ for years to come.

“However, it is important that people’s generosity doesn’t leave them financially exposed.”

Equity release mortgages enable older people to free up some of the value in their properties. The loan is repaid when the property is sold when they die or go into care.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week