New research has shown that over 55s received a striking £1 billion per day in increasing property values between the start of the pandemic and June 2022.
Analysis of ONS statistics by financial services firm Just Group showed that in March 2020, over 55s owned more than £3.5 trillion of housing equity, accounting for just under two-thirds (65%) of the UK’s total housing wealth. Much of this wealth sits with “Boomers” aged 55-74 who own nearly half (47%) of the nation’s housing wealth.
Since the start of the pandemic, the average property has increased in value by 23.08%. This has largely been driven by pent-up demand from the first lockdown, the race-for-space as people hunted for properties outside major cities, and the stamp duty holiday that further stimulated the market.
It means that over 55s could now be sitting on net property wealth of £4.4 trillion, benefitting from a pandemic-fuelled windfall of over £815 billion equivalent to nearly £1 billion of added value every single day between March 2020 and June 2022.
Stephen Lowe, group communications director at Just Group, said the figures were a reminder of the vast wealth held in property by those in, or near, retirement. He said:
“Given over 55s hold the majority of net housing wealth in the UK, it is unsurprising that they will have reaped the biggest rewards from the growth in the market. But as we enter a new economic cycle, this vast storage tank of wealth they have accumulated will inevitably play an important role in their future finances.
With inheritance tax thresholds frozen until 2026, rising house prices will likely tip more estates into paying inheritance tax. Using property wealth to make living inheritances could provide homeowners with a means of mitigating the impact of inheritance tax as well as providing loved ones with financial support.
That assistance could be aimed at helping younger generations onto the housing ladder or simply shielding them from some of the more immediate financial pressures.”
