London accounts for the highest proportion of homebuyers using family inheritance to fund property purchases, according to compliance platform Thirdfort.
Some 18 per cent of Londoners cited family inheritance as a source of finance for home buying, compared with 16 per cent in the East of England, and 14 per cent in the South. Meanwhile, just 10 per cent in the Midlands cited the same and those in Scotland and Wales were least likely to use inheritance with just nine and eight per cent 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 per cent. However, just 19 per cent of homebuyers in the Midlands received family support while only 15 per cent in Scotland said the same.
The research also that those aged 25 to 34 were most likely to receive family support, with 41 per cent using inheritance or a loan from parents to fund a home purchase. Those aged 35 to 44 were next with 37 per cent using inheritance or a parental loan.
Region | Family inheritance | Parental loan | Combined family help |
North | 11% | 11% | 22% |
Midlands | 10% | 9% | 19% |
East | 16% | 17% | 33% |
London | 18% | 13% | 31% |
South | 14% | 13% | 27% |
England (NET) | 13% | 12% | 25% |
Wales | 8% | 12% | 20% |
Scotland | 9% | 6% | 15% |
Northern Ireland | 14% | 14% | 28% |
The findings also show that 14 per cent of 18–24-year-olds are using cryptocurrencies as a source of finance for property transactions, significantly greater than the one per cent of homeowners overall. No homebuyers over the age of 45 reported using cryptocurrencies to fund home buying.
The survey results highlight the breadth of funding sources home buyers now draw upon:
· Savings (59 per cent) and employment income (46 per cent) are the largest sources of funding;
· Some 25 per cent of use some form of ‘bank of Mum and Dad’ support, with 13 per cent drawing upon family inheritance and 12 per cent on a loan from parents;
· Investments account for eight per cent while business ownership accounted for two per cent.
Olly Thornton-Berry, 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.
“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.
