There are over 5 million people with multiple properties after a 30% increase in their numbers since the start of the century.
A study by the Resolution Foundation has found there has been a 30% increase in the number of homeowners with multiple properties in the UK increasing from 1.6 million to 5 million.
The analysis compared the period from 2000-02 and 2012-14 and shows a falling rate of home ownership with young people less likely to be first time buyers. And 40% of adults have no property wealth.
Since the early 2000s the rise in second home-owning has seen a shift with an increasing concentration of property wealth held within a declining proportion of families.
Existing homeowners could consider let-to-buy where the home mover rents their existing property while buying a new home as their main residence.
Property wealth increasing for homeowners
Alongside the rise in the number of second home owners the average value of the properties has increased by 20% in real terms (after accounting for inflation) over the period from £125,000 to £150,000.
For the 5 million homeowners their second properties have a gross value of £760 billion in 2012-14 or 15% of the £5.2 trillion held in gross property wealth overall.
This additional wealth allows the remortgage buyers the opportunity to release capital which they can use to make improve their second home to increase the value further or improve the rental income.
By contrast millennials born after 1981 and aged under 36 own only 3% of the additional property assets. They are the first group since records began to have less than predecessors at the same age.
Laura Gardiner, Senior Policy Analyst at the Resolution Foundation, said the growing concentration of property wealth among fewer families raises concerns for their living standards and for wealth inequality as a whole.
Generation X born from 1966 to 1980 preceding the millennials and currently aged 37-51, account for a 25%.
Baby boomers own the most assets
The analysis shows multiple homeowners are most likely to be baby boomers born from 1946 to 1965 and currently aged 52-71.
Baby boomers account for 52% of the wealth held in additional properties and these asset levels are far higher than those currently aged in their 70s and 80s had at the same age.
The Foundation says that it is a misconception that owning additional properties is a way for middle-income workers or pensioners to improve their savings as buy-to-let landlords.
Of the additional property owners 88% are in the top half of the wealth distribution and 79% of adults who earn income from additional properties as landlords are in the top half of the income distribution.
In addition there are significant regional differences with 59% of landlords living in the South West, South East, East of England and London.
These older homeowners have accumulated considerable value in their properties allowing the equity release buyer to access this wealth using a lifetime mortgage to gift to a child or grandchild the deposit on their first home.
People with second homes have an investment that they can turn to in times of need, for instance in later life when care is required, said Ms Gardiner.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to maintain your lifestyle or even pay for care at home.
Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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