According to research from inheritance lending specialist Tower Street Finance, which surveyed around 2,000 adults expecting an inheritance, among those aged 35 and over 11 per cent plan to use their inheritance to buy a bigger home.
The majority, 58 per cent, said they expect to receive an inheritance from parents and a quarter, 26 per cent, said they expected to receive money from grandparents.
The report added that those aged 18 to 24 expect to inherit £105,000 from parents, whilst those aged 25 to 34 expect to get around £175,000.
On average those under 34 said they were set to receive around £117,000 from their grandparents.
The proportion of people who expect to inherit a property from deceased family member has grown, with 55 per cent of those aged 18 to 34 now intending to keep the property, compared to 27 per cent two years ago.
Those planning to sell has decreased, going from 36 per cent of 18 to 34-year-olds two years ago to a quarter now.
The firm said that it currently takes nine to 12 months for a beneficiary to receive money from an estate, but half of those aged under 24 and 40 per cent of those aged 25 to 34 predict the process will take less than six months.
Dicky Davies, business development director and co-founder at Tower Street Finance, said falling property finances could be good for prospective buyers in the coming months, but rising interest rates could “cause mortgage misery for millions” and rising living costs would diminish disposable income.
He continued: “It’s clear from many young Brits are relying on receiving an inheritance to get a house deposit together or move into a bigger property, and it’s completely understandable why.
“What is worrying is many are unaware of how long the probate process takes, and the wait they could face to get their inheritance.”
Davies said the firm recognised how “frustrating” the probate process could be and it had developed a “range of no-risk solutions to help people access their inheritance sooner”.
He added: that parents or grandparents should also consider inheritance tax rules, which stipulate that cash gifts made up to seven years before death are tax free. This could help children or grandchildren get on the property ladder earlier.
The inheritance tax rules said that if a cash donation of £3,000 or more is made in the seven-year period prior to death then tax may still apply. Davies said that this would depend on number of years between donation, death and the estate value.
