The Bank of Family is expected to fund around 42% of UK property purchases for under-55s and more are looking to use property wealth, research has shown.
According to research from Legal and General in conjunction with the Centre for Economics and Business Research, this is equal to around 335,000 housing transactions supported by Bank of Family lending in 2024.
It will be the largest number of property purchases made through the Bank of Family since the lender started tracking lending from family members in 2016.
Gifting from parents and grandparents is expected to reach around £11.3bn in 2026, the report noted.
The research said that around a fifth of those were offering financial support to prospective homeowners by downsizing, 8% through equity release and 4% through remortgaging.
Around 9% of Legal and General customers used financial gifting in the first six months of the year.
The report said that almost three quarters of parents and grandparents who made a financial gift did not seek guidance from an advice professional before making their financial gift.
Lorna Shah, managing director of retail retirement at Legal and General, said: “Property wealth remains one of the most significant assets for families across the country, so it comes as no surprise that relatives are using it to provide financial support to younger members buying a home.
“Although products like lifetime mortgages are always supported by specialist financial advice it’s important that anyone making a significant gift seeks help from a financial adviser, even if their property isn’t the source of their funds.”
She continued: “Our research shows that, at the moment, very few parents or grandparents seek out professional advice when offering financial gifts to family members, unless they use a fully advised product such as equity release, and this can impact their finances in the long term.
“As equity release moves more into the mainstream, more people are likely to turn to it for help. The ‘Bank of Family’ is predicted to have a busier year than ever, so we might see more people drawing equity from their property to support their loved ones.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
