The Bank of Gran and Grandad has gifted nearly £1 million a day during the Stamp Duty holiday, according to new data from equity release adviser Key.

Following the Stamp Duty Holiday which began just under a year ago, older homeowners have gifted £323.9 million worth of their own housing equity to help younger family members buy their first home or move up the property ladder.

Key’s data shows the pay-outs for house deposits peaked in September last year at £40.6 million and hit a low of £13.16 million in February this year in the run-up to the original deadline of 31 March for the Stamp Duty Holiday before it was extended in the Budget.

The average amount gifted for house deposits each month during the near 11 months of the Stamp Duty holiday so far is around £27 million or £51,595 per borrower, Key’s figures show.

The Stamp Duty holiday ends on 30 June with the 0% rate reduced to £250,000 before being reduced again to its original £125,000 from 30 September. First-time buyers will continue to pay no stamp duty on the first £300,000 of homes worth less than £500,000.

Will Hale (pictured), CEO at Key, said: “With the Stamp Duty Holiday giving people an unprecedented opportunity to climb onto the property ladder, the Bank of Gran and Grandad has stepped up to help finance it. This type of inter-generational generosity is more common than you think and even before this change, one in five equity release customers were using their housing equity to support younger family members.

“While the stamp duty holiday has undoubtedly stimulated some additional demand, we anticipate that older people will continue to want to provide this type of ‘living inheritance’ for years to come. A desire that it is even easier to fulfil with the flexible later life lending products that are available in today’s market. However, it is important that people’s generosity doesn’t leave them financially exposed and therefore, as always, specialist advice is vital so that all options are properly considered.

“With the ability to service interest, make ad hoc capital repayments and having the certainty of fixed early repayment charges, equity release can be an ideal solution to allow parents or grandparents to make these gifts while still having the flexibility to manage borrowing in line with their own changing circumstances.”