Buying a Property for Your Children: A Strategic Move with Long-Term Benefits

nicky657
Apr 30
3 min read

For many of our clients, buying a property for their children is about more than bricks and mortar — it’s a decision shaped by family legacy, lifestyle, and long-term planning.

Whether it’s helping a child onto the property ladder, providing a stable home while they study in Scotland, or securing a future base for family, the motivations are often both emotional and strategic.

But there’s another consideration worth discussing: timing. And how acting sooner rather than later could potentially offer advantages — including in relation to the UK’s seven-year inheritance tax (IHT) rule.

What is the 7-Year Rule in Inheritance Tax?

In the UK, gifts made more than seven years before the donor’s death are exempt from inheritance tax. This includes cash gifts used to help a child purchase property — or gifting the property outright.

If a parent gifts a property and survives for seven years, the value of that gift typically falls outside of their estate for IHT purposes. If they pass away within that timeframe, the tax liability depends on when the gift was made and its value.

Of course, tax planning should always be handled by a qualified adviser — but understanding the implications early in the buying journey can help shape smarter, more intentional decisions.

Why Many Families Are Buying Property for Their Children in Scotland

We regularly support UK-based and international clients who are purchasing properties for their children, often for reasons such as:

University housing – particularly in Edinburgh or St Andrews
Relocating to Scotland for work or lifestyle
Second homes for future family use
Long-term investment — property held in the family for generations

In many cases, parents choose to act early — sometimes purchasing while their child is still in school or just beginning higher education — recognising both the lifestyle and financial value of the decision.

The Long-Term View: It’s Not Just an Investment — It’s a Foundation

When you buy a property for your child, you're doing more than making a financial move. You're creating stability, opportunity, and often a lasting base that serves your family for decades.

By purchasing earlier, you allow time for the property to appreciate, avoid the rising costs of future rent, and, in some cases, begin the clock on that seven-year rule.

It’s about gifting wisely — and living generously.

How 29Twelve Supports Families Through the Process

We work closely with families at every stage of this journey:

Sourcing properties suitable for student living, young professionals or future family use
Advising on areas near top schools and universities
Navigating off-market opportunities
Acting on your behalf if you live abroad
Preparing and managing the property if it’s not immediately occupied
Offering vacant home care until it’s needed full-time

This is a big decision — emotionally and financially. Our role is to make it easier, calmer, and better informed.

If you’re considering purchasing a home for your child, whether for now or the future, it may be worth acting sooner — not just for the lifestyle or market advantages, but for the long-term benefits of forward-thinking planning.

At 29Twelve, we’re here to guide and support you through that process with clarity, discretion and care.