Over the past few months, a great deal of attention has been paid within the UK property sector to the growing importance of the “Bank of Mum and Dad” – the emerging market trend of parental support playing a far greater role in enabling people to access real estate investment.
The phenomenon has had a transformative effect, with “BOMAD” rising to become the equivalent of the country’s ninth biggest mortgage lender. In total parents have lent more than £6.5 billon this year, with 62% of under-35s receiving such support when purchasing a home.
However, parents do not just play an important role in the property market by providing finances to their children to help them buy homes; a huge number of properties in the UK are also passed down by parents to younger generations in their wills. To extend our understanding of the role played by family support and inheritance within the real estate industry, MFS will soon be releasing a new report shedding light on the property portfolios of baby boomers and UK retirees, and the sentiments of those in line to inherit them.
In England alone, it is estimated that £1.5 trillion worth of property is owned by those aged 55 and over. With the UK’s over 55 population set to grow by a third over the next 20 years, this figure could reach almost £2 trillion by 2036.
With hundreds of billions of pounds worth of property set to be inherited by millennials through family members and friends in the decades to come, MFS’ timely research will uncover the challenges and opportunities faced by millennials inheriting real estate. Based on a nationally-representative survey of 2,000 UK adults, the research will reveal how many millennials have, or will be, inheriting a property in the coming years; the average value of the property inherited; what millennials plan on doing with their inherited real estate; and the barriers preventing them from executing their ideal property investment strategy.
We look forward to sharing this research report with you over the coming week.