16:31 PM, 21st August 2017, About 6 years ago 38
The Resolution Foundation, a Tory think tank with former cabinet minister and Conservative lord David Willetts as executive chair, has published an article concluding that “those drawing on wealth or income from additional properties are disproportionately rich and wealthy.”
Click here to read the full article.
The article states there is a case for further action beyond Stamp Duty surcharges for second homes and Section 24 mortgage interest relief reductions, because “the younger generations are failing to accumulate wealth at anything like the rate of their predecessors.”
“These are options and challenges our Intergenerational Commission will continue to explore, because from the perspective of many of Britain’s real ordinary folk who still desire to own their home but find doing so increasingly out of reach, one house would be enough.”
Their policies are based on the rise of second and multiple property owners against the decline of main residence home owners in the last 15 years.
The figures cited are that the share of British adults in families with any property wealth fell 8%, whilst the share with multiple property wealth increased by 30%.
However, they admit that when looking at property wealth trends they have not even taken into account the net wealth after finance!
The report said: “Disregarding mortgage debt (because of difficulties in identifying which properties mortgages are secured against), the assets held in second or additional properties had a gross value of £760 billion in 2012-14 (adjusted to 2017 prices) – that’s 15% of the £5.2 trillion held in gross property wealth overall. This equates to an average of £150,000 per adult with multiple sources of property wealth, a 20% increase since 2000-02. With average net total wealth just over £200,000 in 2012-14, and typical (median) wealth just £84,000, owning multiple properties clearly represents a huge wealth boost.”
This report is looking at the symptoms of the disease and not the disease which is quite simply a failure of supply to keep up with demand increasing prices beyond wage inflation. Economics 101 surely?
There has been a total failure by government in the last 20 years to build or help create the environment to build, enough properties year on year to the point where we are now.