Londoners are the most likely to have loaned money to a family member to help with the cost of living, according to new research from Hodge.
Around three quarters (73%) of people aged over 50 based in the capital have gifted or loaned money to their children or other family members, and 77% of those under 50 and living in London have accepted it in return, the study shows.
The main reason for providing this financial support is to help with general day to day living costs, with around half of those aged under 50 living in the capital (48%) accepting it for this reason.
In its latest study, Hodge questioned 1,240 people aged between 16 and 80+, and also found the vast majority (84%) of people aged under 50 UK-wide claim to need financial support from family to help them with the cost of living.
In relation to these findings, Londoners aged over 50 also feel the most comfortable in releasing funds from their own property to support their loved ones financially, and those aged under 50 in the capital are the most likely UK-wide to have received money as a result of family releasing funds through equity in existing property.
James Enos, national account manager at Hodge, said of 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.”
Hodge has recently reviewed its acceptable property criteria and has made changes which better suit some of the types properties more often seen in the capital. They have now removed height restrictions across its whole product range and now accepts properties over six stories. Also, properties located in close proximity to commercial premises can be considered.
James 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.”
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Hodge is an independently owned group based in Cardiff, offering a range of personal mortgage products, savings products to private and commercial clients, as well as lending to commercial clients nationwide.
Over 85,000 customers across the UK trust Hodge to support them because of its years of expertise and knowledge in the markets it serves. Hodge design products with customers in mind, keeping things simple and straightforward. The Hodge Foundation, a charity supporting the welfare, medical, academic and educational areas own 79% of Hodge.