Britain’s homeowners over the age of 50 control 75% of the nation’s entire housing wealth, according to a report Wednesday by Savills.
With a total of £2.8 trillion (US$3.94 trillion) in real estate equity, the domination that older homeowners have over the housing market demonstrates a huge generational disparity.
Those aged 65-and-over own 43%, or £1.6 trillion (US$2.25 trillion), of that equity, according to the London-based real estate firm.
Homeowners under 35, meanwhile, control 5.8% of Britain’s housing wealth, equating to a comparatively measly £214 billion (US$301 billion) of equity.
Older homeowners are most prevalent in the South West, where the over-50s control 80% of the region’s housing equity, a total of £293 billion (US$412 billion)—some £79 billion (US$111 billion) more than under-35s have across the entirety of Britain.
In the South West, the under-35s account for 4%, or £15 billion (US$21 billion), of the housing wealth.
In London, housing wealth is slightly more evenly distributed across generations, though levels of home ownership in the capital city are significantly below the national average, the report noted.
Over-50s account for 65% of housing wealth in London, while the under-35s own 11%, more than in any other region, according to the report.
The reason for the increased younger ownership in London is due to the city being youthful, the report said. The average age in the capital is 36, compared to 40 across the rest of the country. It is also an area that sees its population skew younger as families and older households move themselves—and their housing equity—out to other markets.
“Our analysis shows that there’s truth in the old stereotype of affluent households selling up in London for a ‘move to the country’,” said Lawrence Bowles, Savills research analyst, in the report. “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.”
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