Nearly 70 per cent of people inheriting homes from loved ones have no desire to live in them, new data reveals.
With more than 12million people lumbered with inherited homes they don’t want, a majority plan to sell them on as quickly as possible.
It is estimated that over-55s in the UK own property worth £1.5trillion, figures from bridging lender MFS suggest. And the average value of homes due to be inherited in the coming decades comes in at £347,500.
Unwanted: Nearly 70 per cent of people inheriting homes from loved ones have no desire to live in them
Paresh Raja, chief executive 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.’
Over 18million people, or 36 per cent of the population, are on course to inherit a property at some point in their lives.
In London, the proportion of people lumped with an unwanted property in another pat of the country rises to 70 per cent.
Over 30 per cent of people in the survey of over 2,000 said they planned to refurbish the home they inherit to make it more appealing to buyers or the rental market.
Time to sell: With over 12million people lumbered with inherited homes they don’t want, over half plan to sell them on as quickly as possible
No plans: One in four admitted they no idea what they would do with their inherited home
More than half said they plan to sell their inherited property as soon as possible so they can re-invest the cash into a different property or another asset of their own choosing.
But, one in four admitted they no idea what they would do with their inherited home.
For millennials, this figure jumps from 25 per cent to 39 per cent, with nearly two fifths of 18-34 year olds admitting they needed advice to help decide what to do with their inherited property.
Property values have ballooned by around 50 per cent in the past ten years, leaving many to consider their options for retirement and beyond.
Last year former Chancellor George Osborne announced complex new rules allowing middle-class households to leave more of their main home to direct descendants tax free.
By 2020/21 a house worth £1million could be passed on tax free – if the entire nil-rate band allowances for both spouses or civil partners in the household is used plus the additional residence nil-rate bands for both.