Some 110,325 buyers received at least £100,000 from a family member last year, up 8 per cent from 102,546 in 2023, according to tech company Twenty7tec.
Duncan Bailey, head of private client and charity at legal experts Brabners Personal, said he had seen an increase in clients asking about gifting.
“That means we’ll see people spending more while living and looking to enjoy the fruits of their hard savings, as well as looking for ways to treat their loved ones.
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The new rules, announced in last October’s Budget, mean pensions will be counted as part of someone’s estate from April 2027 – leading to a surge in people gifting their money away whilst they’re alive to avoid or reduce the bill.
Sarah Phillips, a partner at Irwin Mitchell’s Private Client Advisory team, said: “We’ve seen a surge in clients eager to help relatives get on or move up the property ladder.
Additional data from Savills shows that gifts and loans from parents used for house deposits totalled £9.3bn in 2024, nearly double the £5bn in 2019. The average value of assistance hit a high of £57,317 in 2023, up from £22,137 in 2006.
They also help “second steppers” by making large contributions to small houses in the capital.
“We’re seeing a significant number of mums and dads moving their wealth through the generations to counteract current challenges. We expect this trend to develop still further as many opt out of stocks and shares and into bricks and mortar.”
Things you need to bear in mind before gifting
Ms Phillips said: “To avoid future issues with the relative, their connections or HMRC, it’s crucial to get professional advice on whether the contribution is a gift, a loan, or a share purchase. Each option has distinct legal, tax, and financial implications.
“Donors should also consider how to balance giving similar amounts to other relatives and understand who might pay IHT if they pass away within seven years.”
He said: “This includes not leaving yourself short of money in later life by ‘giving’ too much or too large of a lump sum – crucial given how long many of us are now living.
“Those kinds of hurdles can both be unexpected and difficult to navigate, so it’s important to consult an experienced legal and financial advisor to protect your wealth and best secure the futures of your loved ones.”
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