Housing wealth held by over-60s hits record high
Over-60s now control more than half of all housing wealth in the UK, according to new research.
The rise in value of homes has been particularly acute for those who own property outright, with above-average growth in the number of older homeowners joining the ranks of the mortgage-free, according to property firm Savills.
In total, owner-occupiers aged above 60 control more than half – 56 per cent – of all owner-occupier housing wealth across the UK, while those over 75 control almost a quarter. In comparison, under 35s hold just six per cent.
“The baby boomers have continued to build wealth, having paid off their mortgage debt, and Generation X has been working hard to achieve the same goal. Meanwhile, Generations Y and Z have had much less opportunity to work their way up the housing ladder profitably.
“But despite many older homeowners holding on to properties that are now too big for their needs, there is little incentive for them to move during their lifetime,” Lucian Cook, head of residential research at Savills, said.
Younger buyers have suffered from an unaffordable housing market, something particularly felt by buyers in London.
The under-35s hold property worth £600bn, with £300bn of outstanding mortgage borrowing, according to Savills. For the over-60s, just two per cent of mortgage borrowing is outstanding.
Cook called the provision of more retirement housing and incentives to make downsizing more appealing “fundamentally important”.
While Boomers make up 44 per cent of homeowners, they only made up 18.5 per cent of homebuyers last year, meaning just one in 57 of them moved house, according to Savills.
“Such measures would help unlock much-needed family housing and equity that can be used to help younger generations get on and trade up the housing ladder,” Cook said.