With 22% people using all or part of the equity released to support their families or friends over the past nine months, £605m has been recycled back into the economy.
Two-thirds (64%) of equity release customers consulted with family before going ahead, with just 4% saying their family was sceptical about their plans, according to research by Key.
The most common reason people chose not to involve their family or friends was ‘because it is none of their business’ (29%).
A minority (2%) did not mention it in order to avoid their families feeling guilty as they were looking to use the equity to help them, and just 4% said that they felt their family might react negatively.
With 22% people using all or part of the equity released to support their families or friends over the past nine months, £605m has been recycled back into the economy.
Providing an early inheritance (62%) was the most popular reason for giving followed by help with a house deposit (51%) and helping with debt repayment (9%).
More than a quarter (26%) provided financial support for other reasons, ranging from helping with school fees to family holidays and moving in gifts.
Will Hale, chief executive of Key, said: “Discussions around inheritance or the financial position of older relatives can often be something that families avoid but as part of the equity release process, we actively encourage people to consult their nearest and dearest on the options being considered.
"It is great news that almost two-thirds are happy to have this discussion but we would certainly be keen to see this proportion increase – especially as one in five use the proceeds of equity release to support relatives.
“Far from being the preserve of the wealthy, inter-generational wealth transfer or gifting is becoming far more commonplace as people increasingly realise the impact of a timely boost to the finances of children and grandchildren.
"Naturally, people need to ensure that providing a gift doesn’t damage their own financial security which is something that a specialist adviser will discuss with them.
"However, the use of housing equity can be a pragmatic way for many people to achieve this objective.”
