More than 40% of the nation’s wealth – around £1.6 trn – is held by the over-65s, the study found.
The contrast with younger property owners is stark, with homeowners under the age of 35 holding just £221bn in equity.
Savills identified a stark regional difference in property wealth owned by different generations too. Older households were found to be most dominant in the south west where the over-65s own almost half of all homeowner equity. In fact, those aged over 50 own around 80% of the region’s property wealth, while the under-35s hold just 4%.
London enjoys a less significant generational split when it comes to property wealth though. The under-35s own around 11% of the capital’s housing equity, with the over-50s accounting for almost two-thirds at 65%.
Savills puts this down to London being a hub for young professionals, boasting a lower average age than the rest of the UK.
The study also highlights that the over-65s are not completely debt free. They owe around £112bn on outstanding mortgage borrowing, though this works out at just 7% of the value of their homes.
By contrast, the under-35s owe £117bn, but this is over half the total £22obn of housing wealth they own.
Lawrence Bowles, research analyst at Savills, said that the nation has not seen so much housing wealth concentrated in older hands for a long time, and noted that it is likely that there will be an increase in people downsizing in order to release some of that equity.
He continued: 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.”
Source: Mortgage Solutions UK