Young professionals ducking homeownership as over-50s dominate market

 

The latest data from Savills looking at UK homeownership has revealed that the amount of the nation’s property wealth held by the older generation is on the rise, while youngsters are increasingly less likely to own a home.
[crb_image link=”https://www.buyassociation.co.uk/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]
It has emerged that around three quarters of the UK’s housing wealth is owned by over-50s – which amounts to a total of £2.8trn, or £75 in every £100, according to Savills. Focusing in on specific age groups, it seems that the over-65s are the biggest winners in the property investment stakes, holding around 40%, or £1.6trn, of the country’s real estate wealth.

By contrast, under-35s own just 6%, or £221bn in equity across the country. This news comes on the back of recent statistics from the Institute for Fiscal Studies, showing that the 25-34-year-old age group are around half as likely to own a property now than they were 20 years ago.

The statistics reiterate the fact that homeownership levels in this country are changing, and attitudes have been adapting for some time. While it was once the ultimate goal and aspiration for everyone to be able to buy their own home, growing numbers of people are choosing renting as a lifestyle option – particularly young professionals who enjoy the flexibility of renting, rather than being tied down by a hefty mortgage.

The great divide – by necessity or choice?

In London, where the average inhabitant is 36 years old as opposed to the UK national average of 40, around 65% of all property wealth is owned by over-50s, with 11% owned by under-35s, presenting a slightly more balanced picture in generational terms.

Meanwhile, the south-west of the UK has seen the most marked difference between age groups in terms of property equity, with over-65s possessing almost half (48%) of all housing wealth in the region, and that age group combined with those aged over 50 own around 80% in total, compared to under-35s who own just 4%.

Lawrence Bowles, Savills research analyst, said: “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 homeowners making a lifestyle move, making the region arguably the country’s largest naturally occurring retirement community.”

 

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Leasehold properties made up a third of all homes sold last year

Young professionals ducking homeownership as over-50s dominate market

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.