According to new research one in ten adults, mainly those aged between 52-71 already own a second home, either to use themselves or as a buy to let. Those people in that age group better known as ‘the baby boomers’ hold 52% of wealth held in second properties in the UK. They are also generally more wealthy than their successors ‘Generation X’ those people currently aged from 37 to 51 who own 25% of wealth from multiple properties. Whereas the Millenials, those born since 1981 just own 3% of multiple properties in the UK.
The research comes from the Think Tank, the Resolution Foundation and the Senior Policy analyst commented on their latest research, “Contrary to the popular narrative, these second homeowners are rarely your typical middle-income worker shoring up savings or ordinary retiree boosting pension income. They tend to be baby boomers who are very wealthy indeed relative to their peers, living in the south and east of England.”
Despite baby boomers owning the lion share of second homes in the UK their research also found that 40% of this generation do not own their own home at all. So there’s a real divide not only between the younger generation but also among their peers.
As homeownership becomes more difficult for the younger generation, it could lead to a two-tier society in the future, between those who own their own property and those who don't. Which is why it's even more important for young people if they can to take advantage of schemes like the “Help to Buy” and other Government incentives to make sure that they don't get caught in a cycle of renting.
If you would like to find out more about buying your first home or if you are looking at buying a buy to let why not pop into your local branch of Intercounty or call 01279 655243.
Second home investment still makes sense - https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/more-than-five-million-brits-own-a-second-home