Many property commentators point to the first time buyer as a primary stimulus for the property market. While many property related transactions are indeed reliant on somebody somewhere down the chain buying without being dependent on a related purchase, the influence of “old money” is often overlooked.
The value of housing assets left in wills every year may have more than doubled between 2006 and 2020 to today’s equivalent, according to a Halifax Financial Services report. The report estimates that £420bn of housing assets will have passed from one generation to another by then, with many of the fortunate recipients splashing out their new-found wealth on a new home.
As the baby boomers begin to retire, so their influence on the market will be felt, with about 27% of the population of the UK (or 15.8million) falling into this category. An older, healthier, more mobile population is also likely to move house more frequently than their parents and grandparents did, and they will play an important part in the intra-generational transfer of housing wealth that is to come.
More baby boomers (78%) own their own home than any other UK age group. In addition, baby boomers have witnessed an extraordinary transformation in British society: the rise of owner occupancy. In 1946, an estimated 31% of households owned their own homes – today’s figure is nearly double that! The wealth held in property is likely to be used to assist the next generation in both housing and pension gaps.
The property market can therefore be stimulated from many angles, and a good estate agent will seek to understand and harness these trends to their clients’ advantage! Why not give us a call on 01245 330500 and put us to the test?