Data from international property adviser, Savills reveals that the over 50s age group hold 75% of UK housing wealth – totalling a cool £2,800,000,000 (£2.8 trillion).
The new analysis of Britain’s housing wealth reveals that homeowner equity is concentrated in the hands of older households, with over £75 in every £100 held by the over 50s.
Older owner-occupiers have enjoyed years’ of strong house price growth, with the over 65s owning 43% of that equity - worth £1.6 trillion. In contrast, homeowners aged under 35 account for less than £6 in every £100 of equity held by owner-occupiers.
The study also found that:
- older households are at their most dominant in the South West, where those aged 65+ own almost half (48%) of all homeowner equity - a collective wealth of £176 billion;
- London sees homeowner equity wealth more evenly distributed across age groups, where the average age is 36, compared to 40 across the rest of the country.
Lawrence Bowles, Savills research analyst says: “Our analysis shows that there’s truth in the old stereotype of affluent households selling up in London for a ‘move to the country’.
“The figures for the South West of England are evidence of the trend for older home owners making a lifestyle move, making the region arguably the country’s largest naturally occurring retirement community.”
The over 65s are not completely debt free however, with a total of £112 billion of outstanding mortgage borrowing - equivalent to 7% of the total value of their homes.