Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Family Support Now Central to UK Homeownership, Research Finds

A new survey by The Private Office (TPO) has found that family financial support has become a defining factor in UK homeownership. The research, based on a survey of 2,126 UK adults aged 45 and over, highlights the increasing reliance on family wealth for younger generations to access the property market.

According to the survey, 97% of respondents believe it is difficult or very difficult for young people to buy a home without family support. Additionally, 80% think homeownership is becoming more dependent on family wealth. Property purchase is now the most common reason for financial gifts to family members, cited by 51% of those who have already gifted money, ahead of general living costs and education.

The findings also show that 88% of those surveyed would consider helping children or grandchildren buy a property. There is a shift in attitudes towards passing on wealth, with 81% believing parents or grandparents should help younger generations financially during their lifetime, rather than leaving an inheritance. Furthermore, 83% say younger generations are more reliant on family support than previous ones.

Of those surveyed, 86% have already gifted or loaned money to family members, with outright gifts (82%) far outweighing loans (12%). Among those who have gifted, 22% have given over £100,000, and 58% have given more than £20,000. Only 12% gave under £5,000. Of the 14% who have not yet gifted, 40% plan to do so, with outright gifts before death preferred by 59% over inheritance via a will (32%).

Despite these preferences, the timing of gifts often does not match intentions. Freedom of Information data from HMRC shows that in 2022/23, people aged 85 and over accounted for nearly 60% of all estates that included lifetime gifts, and the largest share of the total value gifted. Only around 15% of estates that included gifts paid inheritance tax on them in 2022/23, indicating most gifts fell within tax-free allowances or were exempt. However, HMRC has collected an estimated £336 million in inheritance tax over the past five years from failed gifting arrangements.

While 64% of respondents say they would feel comfortable giving a large sum to younger family members during their lifetime, concerns about retirement security remain the main barrier. The biggest concern is the fear of running out of money in later life, cited by 37%, followed by worries about care home costs (16%).

These findings underline the growing importance of family support in the UK property market, a trend relevant to letting agents and inventory clerks monitoring shifts in homeownership patterns.