Resolution Foundation – 11.2% of population own multiple homes

by Property 118

16:30 PM, 17th June 2019
About 4 months ago

Resolution Foundation – 11.2% of population own multiple homes

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Resolution Foundation – 11.2% of population own multiple homes

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.



Comments

Owen O'Neill

10:56 AM, 18th June 2019
About 4 months ago

"It is too early to know definitively, but it appears that these changes have halted the growth of the buy-to-let sector"
Well the English housing survey for 2017-18 (which is based on lagging data 12-18 months old) is already reporting a reduction in the size of the PRS after a decade of consistent growth - whilst we might want to wait until Jan 2020 for the 2018-19 survey, I'd class it as pretty close to definitive already.
https://www.gov.uk/government/collections/english-housing-survey

Government should be extremely wary of pulling any more levers until the effect of the current changes have worked their way through (about 2022)

loretta wight

10:41 AM, 22nd June 2019
About 4 months ago

Money was thrown at you by the banks if you worked, precrash. This gave a false sense of property as an investment. House prices rocketed. There are other reasons the young don't buy. They want holidays, technology, nights out, clothing etc. Many are too snobbish outside London to live in a cheap flat. They want semi detached 4 bedroom homes at 20. In the past many didn't buy , or you got married younger then bought together, starting with small flat. It was harder for single people especially women in the 80s to buy until they realise they were more reliable. So it all took off, with for the lucky ones being able to buy council houses. As for pensions most people don't have large pensions, like public sector/ nationalised companies, and paying into a private pension wasn't done. A lot of people work in retail, offices, warehouses etc were not so well off. We forget this. When you start at a low level pre80, where 75%lived in real poverty , feeling better off doesn't take much, e.g. Getting a phone, car, central heating. Yes many families lived in room and kitchens, privately rented, and not cheap. You even paid for doctor appointment in the 60s. How we forget. Also we have people getting married but keeping there previous homes, and having second homes through default. It is more complex.

Badger

11:30 AM, 22nd June 2019
About 4 months ago

Reply to the comment left by loretta wight at 22/06/2019 - 10:41
Where were people who were being charged for doctors appointments in the 1960s living?

loretta wight

18:30 PM, 3rd July 2019
About 4 months ago

Reply to the comment left by Badger at 22/06/2019 - 11:30
Scotland..my mother keeps casting this up at me.

loretta wight

19:04 PM, 3rd July 2019
About 4 months ago

maybe we were posh!


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