Grandparents help cash-strapped millennials onto housing ladder


26th January 2017

But take care before changing your will, advises solicitors firm Miller Hendry

Cash-strapped millennials are getting a helping hand onto the property ladder thanks to their big-hearted grandparents.

Members of the older generation are increasingly choosing to leave all or part of their estates to their grandchildren so they can afford to buy a home of their own.

The news comes after the Institute for Fiscal Studies (IFS) recently produced a report suggesting that those born in the early 1980s have significantly less wealth than those born in the previous decade at around the same age.

The trend comes as no surprise to Caroline Fraser, a partner in Miller Hendry\'s Dundee office.

She said: \"The IFS report shows that people in their early 30s have average household wealth per adult of £27,000. This is just under half the average wealth that those born in the early 1970s would have had at the same age (£53,000). These figures illustrate a significant generational wealth gap and highlights the difficulties younger generations face when trying to get on to the housing ladder.\"

In October 2016 the UK government\'s Housing Minister, Gavin Barwell, suggested that people should consider leaving all or part of their estates to their grandchildren rather than their children to help them get on the housing ladder.

 Mr Barwell also revealed that his mother had chosen to leave her house to her grandchildren rather than himself and his brother.

 Caroline added: \"We regularly have clients who wish to consider passing on part of their estates to their grandchildren to try and help them get on the property ladder. Scottish prices have been steadily rising with the average price of a property being £143,131 in October 2016. This is 4% higher than the year before. If our clients wish to pass on part of their estates to their grandchildren it is important to look at all of their options to allow them to make a decision that is right for them and their family.\"

Miller Hendry

Miller Hendry is one of the longest established and largest legal firms in Tayside. With 16 partners and 150 staff, through our offices in Dundee, Perth, Crieff, Comrie and Auchterarder we provide a wide range of legal expertise to our clients. As well as a sizeable Estate Agency and Property Services business we have specialists in Court, Private Client, Asset Management and Commercial work.

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