Around £360bn in today's money of housing assets will pass from one generation to another over the next 15 years, research from Halifax Financial Services claims.
The Halifax Savings Report says the value of housing assets inherited every year will more than double from £14bn in 2003 to £32bn (in today’s money) 15 years from now.
The report also claims the number of estates with property assets is expected to increase from 104,950 or 59% of the total in 2003 to 115,347 or 65% in 2020.
The 'baby boomer' generation will also play a role in the transfer of housing wealth that is to come. More baby boomers (78%) own their own home than any other UK age group. And 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. By 2001, this number had more than doubled to 70%.
The creation of a property owning society has significant implications for the role of housing as a source of inherited wealth. Housing accounted for 49% of the total value of all estates in 2003 up from 36% in 1998, according to figures from the Inland Revenue. The report suggests this trend will accelerate as baby boomers retire and pass away.
Ray Milne, managing director of Halifax Financial Services, says: "The amount of housing wealth inherited is expected to double in 15 years reflecting demographic changes and the passing away of the first mass generation of homeowners.
“Housing wealth will undoubtedly assist the next generation to provide for their pension. But it does not, by any means, reduce the need to save for the future including making provision for retirement."
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