A data request submitted to the ONS following the publication of its Wealth & Assets survey earlier this year reveals the sheer scale of financial wealth held in property by those aged over 55. It highlights the importance of property as part of household wealth, offering a resource that can be accessed later in life to meet a variety of needs – from topping up retirement income to helping family.
Property owners in the UK aged 55 and over, held an aggregate total of £3.7 trillion in property wealth in the period April 2020-March 2022, representing 68% of the nation’s total housing wealth – defined as the value of all properties minus mortgage debt.
The 55-64 age group owns the greatest amount of private property wealth with a total value of £1.4 trillion (25% of the nation’s private housing wealth). The cohort aged 65-74 holds £1.2 trillion (23%) and those aged over 75 hold £1.1 trillion (20%).
The 45-54 age group owns £1 trillion of housing wealth (18%) but there is a sharp decline in the amount of housing wealth held by younger groups; with 35-44-year-olds holding £537 billion (10%) and 25-34s holding £219 billion (4%).
Stephen Lowe, group communications director at retirement specialist Just Group, said: “The sheer scale of property wealth held by older people enables them to plug into the powerhouse of financial resources held in their homes to meet a range of needs in later life – from topping up their own income in retirement to helping family.
“The ability to tap into this wealth will be particularly useful for people who may be entering retirement without the security of a defined benefit pension and with only modest defined contribution pensions. It can also power the next generation of home-ownership as parents use the wealth they have stored in their homes to help their children climb onto the property ladder.
“The continued freeze on Inheritance Tax thresholds is likely to tip more estates into paying the tax but using property wealth to make living inheritances could provide homeowners with a means of mitigating the impact of inheritance tax and provide loved ones with extra financial support.”
