New analysis of Britain’s housing wealth reveals the extent to which homeowner equity is concentrated in the hands of older households, with over £75 in every £100 held by the over 50s, according to international property adviser, Savills.

These older owner occupiers, who have benefited from years of strong house price growth, now own three quarters of all equity, with a total value of £2.8 trillion. The over 65s alone own 43 per cent of that equity and are worth £1.6 trillion. By contrast, the under 35s account for less than £6 in every £100 of equity held by owner occupiers.

Owner occupier equity – biased towards older home owners in the South and East

Region Homeowner equity by age group £billions Total u35 35-49 50-64 65+ South East £35 £148 £259 £348 £790 London £81 £178 £229 £251 £740 East of England £21 £87 £151 £202 £461 South West £15 £59 £117 £176 £367 North West £12 £46 £88 £119 £265 West Midlands £11 £41 £79 £114 £246 Scotland £11 £38 £73 £91 £213 East Midlands £9 £37 £69 £90 £205 Yorkshire & Humber £10 £35 £65 £84 £194 Wales £5 £19 £39 £55 £118 North East £3 £12 £26 £33 £74 Great Britain £214 £701 £1,197 £1,566 £3,678

Source: Savills Research

Older households are at their most dominant in the South West. There, the over 65s alone own almost half (48%) of all homeowner equity and are worth a collective £176 billion. Add in the over 50s and together they own a staggering 80 per cent of the region’s owner occupier equity, a total of £293 billion. At the other end of the scale, the under 35s account for only 4 per cent, just £15 billion of housing wealth across the region.

Housing wealth in London is somewhat more evenly distributed across the different age groups of owner occupiers (albeit levels of home ownership are significantly below the national average at 48% in 2017 according to the English Housing Survey, compared to 63% across England). The over 50s account for 65 per cent of housing wealth held by owner occupiers. The under 35s own 11 per cent, much higher than the 6 per cent national average.

London is a youthful city: the average age in the capital is 36, compared to 40 across the rest of the country, which part explains this difference. It is also a city that sees families and older households transport housing equity out to adjoining markets and beyond.

“Our analysis shows that there’s truth in the old stereotype of affluent households selling up in London for a ‘move to the country’,” says Lawrence Bowles, Savills research analyst. “The figures for the South West of England are evidence of the trend for older home owners making a lifestyle move, making the region arguably the country’s largest naturally occurring retirement community.”

The over 65s are not completely debt free. They have a total of £112 billion of outstanding mortgage borrowing still outstanding, but this is just 7 per cent of the total value of their homes, Savills calculates. In stark contrast, the under 35s hold property with a total value of £220 billion, but borrowing of £117 billion.

“Unlike many younger households, older home owners have huge buying power and a range of choices, particularly those in the South and East,” says Bowles. “Historically, high levels of house price inflation have contributed to the equity of existing homeowners, but younger generations are unlikely to enjoy such a boost to their wealth. We’re forecasting house price growth averaging just 14 per cent over the next five years, half the 28 per cent growth seen over the last five.”



“But this analysis considers only those lucky enough to own their own home. Older households in the private rented sector face less certain housing costs without a store of housing equity to fall back on.”