The report looked at how private financial transfers help households to get on the Grand Duchy’s property ladder.
90% of these households own their own home, while 16% received their home either as a gift from family or as part of an inheritance, according to the study.
Of the remaining households in Luxembourg which have not benefited from substantial inheritance sums, around 60% own their own property. 6% of the total number of property owners in Luxembourg inherited their housing.
The likelihood of a household owning their own home increases by 4-6 percentage points on average if the household benefited from private financial support, says the study. However, the effect depends on the amount, with the impact on property ownership being less significant for people who inherited or received less than €100,000, largely due to Luxembourg’s exaggerated property prices.
The BCL highlighted the fact that, according to 2018 data, the sum of €50,000 accounted for less than 8% of the average property value in the Grand Duchy.
In a further study published on Friday, the BCL noted that the financial vulnerability of households in Luxembourg increased between 2018 and 2021, as household debt increased at a faster rate than household income.
