We are indebted to TwentyCi for an article published back in May regarding the comparative ages of home buyers in the year to date. TwentyCi are a data and analytical research based business who claim a ‘collective passion for data and its power to create impactful, measurable and lasting relationships with their clients’.
The report appeared in a publication by Mansion Global and was based on the findings from TwentyCi’s Property and Homemover report. The article highlights the fact that nobody is taking advantage of renewed confidence in the U.K.’s property market more than older home buyers, who are responsible for an increasing number of property deals in the UK.
Homeowners aged 66+ were responsible for some 43,000 property transactions in the first quarter of 2018, a 46% increase compared to the same quarter in 2017. Transactions are likely being fuelled by a combination of pension drawdown and equity retrieval as the baby boomers access their accumulated wealth. Nationally, property transactions are up nearly 8% from the same quarter in 2017 and have recovered from the typical end-of-year slowdown as over 100,000 more properties have come on the market in the last three months than during the tail end of last year.
This activity suggests increased confidence and stability in the real estate market as the political and economic turbulence eases while a Brexit pathway becomes clearer, the report said. Though, Mr. Bradshaw, CCO of TwentyCi noted, “There’ll be many more twists and turns before we fully understand the post-Brexit landscape.”
At the other end of the spectrum, purchases by younger buyers aged between 18 and 35 have nosedived so far this year, with a 24% decline in transactions in the last three months. The generational disparity is echoed in the UK’s total housing equity. Britain’s homeowners over the age of 50 control 75% of the nation’s entire housing wealth with a total of £2.8 trillion in real estate equity, according to a recent report by Savills. Homeowners under 35, meanwhile, control 5.8% of Britain’s housing wealth, equating to a comparatively measly £214 billion of equity.