Grandparents set to pass on £400bn in housing wealth

 
Helen Cahill
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More and more young people are relying on their parents and grandparents to haul them onto the housing ladder (Source: Getty)

UK grandparents are set to pass on £400bn in housing wealth, and the majority want to hand it down to their millennial grandchildren, rather than give it directly to their children, the "baby boomer" generation.

Research by Royal London has found that around four million people (24 per cent) between the ages of 25 and 44 will benefit from grandparents handing down their property wealth.

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Typical grandparents have between £400,000 and £500,000 to pass on, the report said, money that will be shared between five people.

But the older generations are not holding onto their wealth; two in five grandchildren have already received money from their grandparents, and just over half have been given money from their parents.

Steve Webb, director of policy at Royal London, said: "Grandparents still attach great importance to passing on their wealth rather than consuming it. Many in the next generation feel under considerable pressure to pass any inheritance straight on to their own children as they are acutely aware of the challenges faced by their millennial offspring.

"Those millennials lucky enough to have home-owning parents and grandparents may be set to benefit from significant inheritance which will help them onto the housing ladder. But the majority of millennials are not in that position."

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