Londoners, particularly those over the age of 50, are more likely to have loaned or gifted money to family members to help with the rising cost-of-living, as found in a recent study by Hodge.
The research indicates that around 73% of Londoners over 50 have provided financial assistance to their children or other relatives.
This trend is also seen in younger age groups, with 77% of those under 50 in London having accepted such financial help.
The primary purpose of this support is to alleviate day-to-day living expenses. Approximately 48% of those under 50 in the capital have accepted financial help for this reason.
The study, which surveyed 1,240 individuals aged 16 to over 80, also discovered that a significant 84% of people under 50 across the UK need family support to manage living costs.
Interestingly, older Londoners feel more at ease releasing equity from their properties to financially aid their loved ones.
Correspondingly, younger Londoners are the most likely in the UK to have received money sourced from family members’ property equity.
James Enos, national account manager at Hodge, commented on the findings: “What these results show us is that even though inflation is slowly coming down, people are still feeling the pinch and many are going to family members to ask for financial help at a time of need.
“The ability to release equity from homes to help in this regard is therefore proving increasingly useful, particularly for those in the capital where, no doubt, higher house prices are making this an ever more attractive prospect.”
In response to these trends, Hodge has reviewed and adapted its property criteria to better align with the types of properties commonly found in London.
This includes the removal of height restrictions across all product ranges, now accepting properties over six stories, and considering properties close to commercial premises.
Enos further added: “Our focus here at Hodge has always been to flex and respond to market pressures in a way that allows us to continue supporting our brokers and their customers in the moments that matter – and we’re working harder than ever in light of this research to make sure that continues.”
