Millennials and second homes

Over one in ten people across Britain own second homes, buy-to-let and overseas properties worth £941 billion, according to new research published by the Resolution Foundation. Game of Homes – a report funded by the Nuffield Foundation – looks at the growth of additional property wealth over the last two decades, who owns it, and what it means for wealth gaps across Britain.
The report shows that rising additional property wealth since 2001 has been the flipside of falling home ownership. The latest data (for 2014-16) shows that 5.5 million people reported additional property wealth, up 53 per cent since 2001. The value of additional property wealth has increased from around £610 billion in 2001 to £941 billion over the same period (both in 2018-19 prices). Game of Homes finds that, like most other forms of wealth, additional property wealth is accumulated over time, and is therefore most common among older generations.
Around one in six people born in the 1950s report additional property wealth, the highest of any cohort. The report notes that younger generations are failing to match the home ownership rates of previous generations, with 37% of people born in the 1980s having property wealth at age 29, compared to 50% of people born in the 1960s. However, it finds that younger generations are matching the additional property ownership rates of previous generations, with seven per cent of those born in the 1960s and 1980s having additional property wealth by the age of 29.
This suggests that millennial property wealth is being increasingly concentrated among rich households, says the Foundation. Looking at the kinds of additional property wealth that people own, the report shows that buy-to-let property is now by far the most common form, having grown by 58% since 2006-08. 1.9 million people have buy-to-let property wealth, compared to 970,000 people owning overseas property (which has not grown since 2008). The Resolution Foundation says that big income transfers in the buy-to-let market are currently taking place between generations. Younger private renters tend to transfer money to older landlords, with baby boomers receiving more than half of all rental income in the UK.

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