UK Heirlooms go hi-tech

15^th February 2005

Changing trends in £25bn UK heirloom market

Surprisingly, technology gadgets are set to feature prominently among items to be handed down in the future, with 33 per cent of Britons planning to bequeath their iPod, 31 per cent of whom are over 50 years old.

The UK heirloom market is currently worth £25bn 40% of Britons own an heirloom (Total population is 58,789,194).
40% of Britons who own an heirloom (9,641,428) know the financial value of the item. The average value of each heirloom is £2,672 (see footnote 2 for workings out). To find the minimum value of all heirlooms, multiply £2,672 (average value of an heirloom) by 9,641,428 (40% of Britons who own an heirloom and know its value) to arrive at £25bn.
with four in 10 Britons having received an inheritance. The average heirloom value is £2,672 Calculating the average value of an heirloom
Based on a population of 58,789,194 (Census 2001), 40% have inherited an heirloom (23,515,678), of these 41% know the item's financial value (9,641,428). Of those who have inherited an item and who know its financial value,

· 24% valued their item at up to £100 (median =£50)
· 16% valued their item at between £101 and £299 (median = £200)
· 11% valued their item at between £300 and £499 (median = £399.5)
· 10% valued their item between £500 and £999 (median = £749.5)
· 12% valued their item between £1,000 and £1,999 (median = £1,4995.5)
· 4% valued their item between £2,000 and £4,999 (median = £3,499.5)
· 4% valued their item between £5,000 and £9,999 (median = £7,499.5)
· 19% valued their item at over £10,000 (median = £10,000).

Taking these populations and multiplying them by the median value for each band shows that the total value of heirlooms is £25,761,843,392. This is then divided by the number of people who own an heirloom and know its value (9,641,428) to calculate the average value of an heirloom at £2672. however 19 per cent of heirs are sitting on items worth in excess of £10,000.

Jewellery (34 per cent), antiques (eight per cent) and furniture (eight per cent) are among the most popular items currently bequeathed.

The Direct Line research highlights a shift in who will inherit, with 35 per cent of Brits intending to leave their heirlooms to friends before brothers (17 per cent), sisters (22 per cent), husbands (25 per cent) and wives (28 per cent) The exception is daughters (58 per cent) and sons (59 per cent)..
This shift to favour friends over family may be attributed to the extended role played by friends in today's society, influenced in part by the influx of TV shows such as Friends, Sex In The City and Will and Grace.

And sentimentality has already gone out of the window for one in 10 Brits who have sold their heirlooms rather than hand them down – surprisingly those aged over 50 (13 per cent) are more likely to do so than under 30 year olds (2 per cent).
The research also highlights that the heirloom trend is now changing dramatically from past generations. For example, wine collections will feature for the first time among the heirlooms handed down, with one in 20 Brits bequeathing the contents of their cellars, one in five of whom are under 30 year old.

Worryingly, the Direct Line research reveals that even though half (49 per cent) of heirloom owners would be devastated if their heirloom was damaged or stolen, eight in 10 (86 per cent) may not have adequate insurance cover.

Simon Ziviani from Direct Line Home Insurance comments:
"Our research shows that there has been a shift in what society values materially, and also in who we want to inherit our most prized possessions.'
"Inherited items are often unique and therefore very valuable, so we need to consider having them listed specifically on our home insurance. Most insurers will cover valuable items such as jewellery, pictures and objets d'art to a set amount unless they've been itemised. Therefore, we advise people to consider whether their heirlooms and other valuable items are adequately covered."

Heirlooms List

Britons were asked about the types of heirlooms inherited by their parents, the types of heirlooms they have inherited recently and the types of heirlooms they will hand down to identify the heirlooms list (past, present and future).

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Notes to editor

The research was carried out by YouGov from January 7th-10th 2005. A total of 2,066 UK adults aged 18 and above were questioned.

Direct Line Insurance plc. Authorised and regulated by the Financial Services Authority. Calls may be recorded. Conditions apply.