A significant proportion of people aged under 35 will not be able to get on the property ladder without an inheritance windfall, new research has found.

A study by Tower Street Finance revealed high property prices and rising interest rates mean one in six (17%) of 18- to 24-year-olds and 15% of 24- to 35-year-olds are relying on inheriting money in order to buy property.

The probate lending firm also found that around one in ten (11%) of under-35s are depending on an inheritance to buy a bigger home.

The majority of under-34s (58%) told the study that they expect to receive an inheritance from their parents, while a quarter (26%) anticipate receiving money from one or more of their grandparents when they die. On average, under-34s expect to inherit £117,000 from their grandparents.

As many as 55% of 18- to 34-year-olds said that if they inherited a property from family in the next 12 months then they would keep it, while a quarter (25%) said they would sell it. This contrasts with a similar survey from two years ago for which the figures were 27% and 36% respectively.

While the probate industry currently advises that it takes nine months to a year before a beneficiary receives any money from an estate, half (50%) of under-24s and four in ten (40%) 25- to 34-year-olds estimated it would take six months.

“Falling property prices may be good news for those hoping to get onto the property ladder in the coming months, but rising interest rates are set to cause mortgage misery for millions, and rising living costs are leaving many with very little disposable income to put away for a deposit too,” said said Dicky Davies, business development director and co-founder at Tower Street Finance. 

“It’s clear from the survey that 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.”