A total of £2.1bn has been given to relatives by grandparents and parents since January 2020, research from Key Later Life finance shows.
This makes up 17% of the total amount of money taken from equity release in the same amount of time – £12.1bn.
The data is broken down by region and shows that people in London have given the most: £168,688 on average.
London also houses the youngest average age of inheritance in the country, at 39 compared to a UK-wide age of 47 (and a total of £75,337 given through equity release).
The smallest amount given is in the North East, at £41,483 on average.
In the third quarter of 2020, Key found out that 45% of people used equity release to provide an early inheritance, with this rising to 69% in the third quarter of 2021. This has since dropped slightly, to 63%.
Repaying debts is the reason that has seen the most growth in the last year, going from 6% to 10% by Q3 2022. However, this is still behind the 12% number given for Q3 2020.
Key chief executive Will Hale says: “Even though the cost-of-living crisis is being felt across all age groups, over-55s homeowners remain keen to share the benefits of sustained house price growth with their wider families to help them achieve their dreams when it will be most beneficial.
“This is no small thing and the type of everyday intergenerational fairness that comes naturally to many people.”
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