A third of home inheritors will look to refit
26th September 2017

More than a third of all UK adults are likely to inherit a property and nearly a third of all those will look to refurbish it before they put it up for sale or rent, according a survey released this week.

The research, by bridging lender MFS, shows that of the 36% of UK adults expecting to inherit, some 67% will choose not to live there and 55% will try to sell on as soon as possible and 32% will refurbish it before putting it on the sale or rental market.

The findings coincide with research from Royal London, which estimates that £400 billion worth of property will be passed from grandparents to younger generations in the coming decade.

While a significant number of adults already know what they are planning to do with the property they are inheriting, MFS’ research also revealed that one in four (25%, or 4.66 million adults) still have no idea what to do with the real estate being passed down to them. For millennials, this number jumps from 25% to 39%, with nearly two fifths of 18-34 year olds requiring advice to help decide what to do with their inherited property.

Paresh Raja, CEO of MFS said: “We are about to witness a momentous transition of property wealth from the older generations to millennials and Generation X. With a significant proportion of UK adults not wishing to live in the property they are due to inherit, it is vital they give full consideration to find the best approach available – this could be a quick sale or a short-term refurbishment project in order to take full advantage of the potential of their new property.

Importantly, a range of options exist for those inheriting real estate, and it is clear that greater awareness and education is needed so that people are able to make informed investment decisions.”