Average cash gift drops as parent still offer ‘vital support’ to first-time buyers | Personal Finance | Finance

Parents have dug deep into their pockets, handing over nearly £2,000 to help their children navigate the  cost-of-living crisis. A survey of 2,000 individuals aged over 50 revealed that almost a quarter have gifted their offspring a substantial sum in the past five years.

Of these generous parents, nearly one-third stepped in during a financial pinch to help cover escalating bills, providing an average of £1,972. Another 16% have assisted their children in clearing debts – donating an average of £2,615 to get them back on track financially. However, the most significant contribution comes in the form of a house deposit.

Among the 18% who’ve supported their kids onto the property ladder, the average handout totalled over £30,000.

Mark Screeton, CEO at SunLife, which commissioned the research as part of its Life Well Spent report, said: “Even in tougher economic times, parents are still doing what they can to give their children a head start.

“For many families, the Bank of Mum and Dad – or even Grandma and Grandad – isn’t just helping with a first home, it’s securing a stronger financial future.”

The report also disclosed that 15% of parents have helped fund a holiday for their children – contributing an average of £1,500. An additional 14% have helped them get behind the wheel by putting £4,659 towards a new vehicle.

And for those covering the cost of weddings, the average contribution amounted to £4,659 to help them tie the knot.

When it comes to these cash gestures, parents account for the vast majority (89%) of givers, while grandparents makeup a further 7%. However, the average cash gift has now decreased to £12,323 – a drop of £7,698 compared to 2024.

Despite this decline, 84% of those who have assisted their loved ones onto the property ladder reported an increase in their own happiness.

Mark Screeton from SunLife added: “These contributions, while generous, are also shown to improve the happiness of those gifting the funds, making this a positive experience for both generations.

“As the government considers changes around cash gifts, our research highlights just how vital this support continues to be for first-time buyers across the UK, especially in today’s economic climate.

“For homeowners that are property rich and cash poor, releasing equity from your own home can offer a way to help younger generations with a step up onto the property ladder.

“In fact, many people who release equity enjoy using some of the money to give loved ones an early inheritance, while they are still here to see them enjoy the money.”