Inheritance plays a major role in helping ‘generation rent’ by their first home, according to a new report.
The Government’s English Housing Survey, published on 1 February, reported an increase in the number of people taking out mortgages - the first increase for a decade - as the rental market stalls.
The report echoes research conducted by the property law firm Collyer Bristow and published in its Home Ownership Attitudes and Aspirations report, which shows that home ownership remains the ultimate goal for young adults living and working on London and the South East. It also found that inheritance plays a major role for many when buying a first home.
Janet Armstrong-Fox, head of private client property at Collyer Bristow said: “Our Home Ownership Attitudes and Aspirations report showed that 73% of men and 57% of women hope to buy their own home within the next five years. Personal and joint savings lead the way for those intending to purchase a home (62%). The ‘Bank of Mum and Dad’ also plays an important role, with 32% receiving help from their parents to fund their purchase.
“One statistic that did surprise us was the high number of purchases reliant on inheritance: 31% of homeowners had inherited property or cash and a further 21% expect to inherit property or cash to fund a property purchase at some point in the next five years.”