Over-60s Now Control 55% of UK Property Wealth as Generational Divide Widens
Baby boomers have solidified their dominance over the nation's housing wealth, with new analysis showing those aged 60 and over now own a staggering 55 per cent of all property in the United Kingdom. This stark reality underscores a rapidly widening generational gap, as younger generations face increasingly prolonged waits to secure a foothold on the property ladder.
Record Wealth Held by Older Homeowners
Data from leading estate agency Savills paints a clear picture of this disparity. The over-60 demographic owns a record £3.84 trillion in property wealth, free from mortgage debt. This colossal sum encompasses both primary residences and buy-to-let investments. Focusing solely on main homes, this group owns £2.925 trillion outright, marking an increase of £35 billion from the previous year and continuing an upward trajectory to new highs.
In stark contrast, the collective property wealth of younger generations pales in comparison. Those in their 40s hold £860 billion, individuals in their 30s own £536 billion, and the under-30s possess just £130 billion. Combined, this amounts to £1.526 trillion, representing a mere 22 per cent of the total housing market. Meanwhile, people in their 50s account for £1.139 trillion, constituting 23 per cent of the market share.
Historical Trends Show Deepening Divide
Separate analysis conducted by The Independent reveals how home ownership trends have evolved over time, further highlighting the concentration of wealth among older age brackets. In the 2024/25 period, over-65s comprised 62 per cent of households that owned their homes outright without any mortgage.
This figure stands in sharp relief against other age groups: 23 per cent for those aged 55-64, 9.16 per cent for the 45-54 bracket, and less than 3 per cent for each demographic below this range. Official data confirms this gap has been widening over the years, with the percentage point difference between over-65s and 45-54s expanding from 42 to 53.
Rising House Prices Pose Significant Barrier
Experts consistently point to soaring house prices as a primary barrier preventing younger people from entering the property market. Following a significant spike during the Covid-19 pandemic, property values have remained persistently elevated. The average UK house price surged to nearly £300,000 in 2022, up from approximately £230,000 in 2020. Although the latest government data indicates a slight correction to around £270,000, affordability remains a critical challenge for first-time buyers.
Lucian Cook, head of residential research at Savills, commented on the findings: "Housing is clearly a massive store of wealth in the UK, especially for older homeowners who hold high proportions of both owner-occupier and buy-to-let housing wealth. Over the past year, we have observed more robust first-time buyer transactions as mortgage regulations were relaxed. However, the intergenerational transfer of equity is still destined to be a prominent feature of the housing market in the coming years."
This analysis arrives amidst political discussions on housing policy, with Labour's ambitious homebuilding targets recently described as 'a challenge' by the housing minister. The data underscores the profound structural inequalities within the UK property landscape, where wealth accumulation is increasingly concentrated among older generations, leaving younger aspirants struggling to bridge the divide.
