Half of those who inherit property plan to sell it
More than a third of UK adults (36%) will inherit property – equivalent to 18.64 million people, according to research from MFS.
In a survey of over 2,000 people, the bridging lender found that the average expected value of these inherited properties is £347,500.
When asked what they intend to do with the house they will be inheriting, 67% of respondents said they have no intention of living in it.
In fact, the research found that over half (55%) will be looking to sell as soon as possible so that they can re-invest the money in a different asset or property of their choosing – amounting to 10.25 million UK adults.
However, nearly a third (32%) are looking to refurbish the house to sell or rent out.
One in four 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.
“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.”