Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 6 days ago 74
The Resoluion Foundation have published a report titled: “Game of Homes: The rise of multiple property ownership in Great Britain.” Click here to download the full publication.
The report finds in summary that:
Additional property wealth was worth £941bn in 2014-16 with 5.5 million adults equating to 11.2% of the population owning multiple properties. The greatest source of of additional property wealth being by 1.9 million people with Buy to Let mortgages.
“Despite younger generations being less likely to own homes than their predecessors, if they do own a home then they are more likely to own several of them. 37% of people born in the 1980s owned property wealth at age 29, compared to 50% of people born in the 1960s. By contrast, the 1980s cohort reached the same rate of additional property ownership as those born in the 1960s by the age of 29, with 7% of adults holding it in both cases.
“Three major reasons for owning additional property are to provide income, to give security in retirement, and to pass on wealth to younger relatives. Today 52% of all rental income is received by baby boomers, with 25% received by generation X. 10.8% of working age people plan to used income from additional property to help fund their retirement, though it is a complement to rather than a replacement for these people’s pensions, as their pension wealth is at least as large as the wider population.
“Policy makers have made progress in recent years in changing the tax reliefs and other incentives available for people who own multiple properties. It is too early to know definitively, but it appears that these changes have halted the growth of the buy-to-let sector. That said, there remain several challenges for policy makers to consider, to re-balance the housing market more towards first-time buyers and to think more broadly about how housing is taxed fairly and efficiently.”
Obviously the Resolution Foundation are trying to make the case that additional property ownership has had a detrimental affect overall on the younger generations.
However, the graph below may look conclusive, but from 1992 when finance was not easily available to the credit crisis in 2007/8 when BTL finance was at it’s peak the increase in percentage population with additional wealth was actually very small. Then the post credit crisis increase in additional property wealth shows factors at play other than BTL.
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