Skip to content

Trellows Luxury Homes

Stamp Duty Holiday allows older owners give more help to younger

Stamp Duty Holiday allows older owners give more help to younger

Older homeowners gifted an average of £42,500 to younger relatives to help them buy in the past year, according to new research.

This is almost two-thirds of the average first time buyer deposit and will have helped more than usual because of the stamp duty holiday operating since July 2020.

That £42,500 average masks a much larger figure in London – typically a huge £102,826 – while those in South East England gifted an average £61,500.

Below average sums were gifted in the North West (£23,467) and Yorkshire (£25,217).

The analysis, by Key equity release company, involved a study of over 1,000 older homeowners.

Key chief executive Will Hale says: “Finding almost £60,000 to use as a deposit for your first home is tough – especially in the current economic environment – and therefore it’s not surprising that many younger people have looked to take advantage of the stamp duty holiday.

“In 2020, older homeowners released almost £755 million of equity in order to help younger members of their family meet a range of costs including supporting them with an average of £42,500 to use for a house deposit.

“For many people, these gifts will have been the enabler to them buying their first home and is a perfect example of how intergenerational wealth transfer can deliver positive societal benefits.  The stamp duty holiday has certainly been a catalyst for more activity in this area but helping family is always a major motivation for older homeowners exploring their equity release options.”

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments