Over 55s hold £3.7tn in property wealth, accounting for 68% of the UK’s total private housing equity, according to new figures released by the Office for National Statistics (ONS) in response to a data request based on its Wealth and Assets Survey.
The data underscores the growing role of housing wealth in later-life financial planning and intergenerational support.
The figures, covering the period from April 2020 to March 2022, reveal that property wealth is increasingly concentrated in older age groups. Those aged 55 to 64 hold £1.4tn, the largest share among all cohorts. Homeowners aged 65 to 74 hold £1.2tn, while those aged 75 and over hold £1.1tn.
In comparison, younger generations hold significantly less. People aged 45 to 54 own £1tn of property wealth, those aged 35 to 44 hold £537bn, and the 25 to 34 age group owns just £219bn. The 16 to 24 age group holds just £4.2bn.
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.”
He added: “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.”
Lowe also noted the potential tax implications. “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.”
