People who receive a large inheritance move more often and invest more in their homes

People who receive an inheritance of 50,000 euros or more move more often than people who do not receive such an inheritance. They are also more likely to buy a larger home, such as a detached house. Many of these people also invest in their new home, for example by installing solar panels.

Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS) followed more than 30,000 children whose parents, born between 1936 and 1945, had died. Statistics Netherlands examined what these people do with their inheritance in the housing market. Approximately 31 percent of these children received an inheritance that was registered with the tax authorities.

In half of the cases, the inheritance was 43,000 euros or less, while in the other half it was more than that amount. For 14 percent, the inheritance amounted to 50,000 euros or more. For 6 percent, it was even 100,000 euros or more.

Of the people who received an inheritance of 50,000 euros or more, 21 percent moved within three years of their parent’s death. People without such a large inheritance moved less often. After moving, heirs were more likely to live in a detached house.

The proportion of heirs living in a detached house rose from 15 to 29 percent over three years. They were also more likely to live in a larger home measuring 150 square metres or more. In addition, more people with a large inheritance moved into owner-occupied homes.

Sometimes they bought their parents’ house. Many people used their inheritance to install solar panels on the roof. The proportion of homes with solar panels rose from 10 to 25 percent.

Heirs also made additional payments on their mortgages. Over three years, mortgage debt fell by an average of 13,000 euros. It is possible that people also bought other things for their homes, such as a new kitchen, but no figures are available on this.