Londoners most likely to rely on inheritances to buy property

Thirdfort boss Olly Thornton-Berry says one in four homebuyers in the UK rely on the ‘bank of Mum and Dad’ when it comes to buying property.

Olly Thornton-Berry, Thirdfort

More homebuyers in London are using family inheritance to fund their property purchases than anywhere else in the UK, research from compliance platform Thirdfort reveals.

Almost one in five (18%) Londoners cited family inheritance as a source of finance for home buying, compared with 16% in the East of England and 14% in the South.

USE INHERITANCE

Meanwhile, just one in 10 (10%) in the Midlands cited the same and those in Scotland and Wales were least likely to use inheritance with similar numbers (9% and 8%) saying the same.

The survey of 2,054 UK adults by YouGov also shows those in the East of the country were more likely to receive family support overall. A third of homeowners in the East received either a loan from their parents or inheritance to help buy a property.

Homeowners in London were next with 31%. However, just 19% of homebuyers in the Midlands received family support while only 15% in Scotland said the same.

 The research also that those aged 25 to 34 were most likely to receive family support, with 41% using inheritance or a loan from parents to fund a home purchase. Those aged 35 to 44 were next with 37% using inheritance or a parental loan.

The findings also show that 14% of 18–24-year-olds are using cryptocurrencies as a source of finance for property transactions, significantly greater than the 1% of homeowners overall.

RANGE OF SOURCES

Olly Thornton-Berry (main picture), Co-Founder and Managing Director of Thirdfort, says: “Our research shows that homebuyers now draw upon a wide range of sources to fund transactions.

“Verifying those sources of funding and wealth is a complex but essential focus for property professionals who have a regulatory responsibility to ensure that funding is legitimate.”

But he adds: “Though some areas such as savings and employment can be easily verified, others such as gifts and investments pose a significant risk to property professionals and the wider economy.

“That’s why it’s important for home buyers and property professionals to use the latest tools and technology to ensure transactions are safe and secure.”

Chart showing Londoners most likely to use inheritance to buy property.
Source: Thirdfort

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