In their savings report highlighting wealth trends in the UK, Halifax have estimated that around £360 billion worth of housing assets will be inherited in the next 15 years.
Increases in house prices above inflation are cited as being the cause for this rise. The value of housing until 2021 is expected to increase at an average annual rate of 5.6%.
By 2021, an estimated 20% of the UK's population is thought to be aged over 65, which is an increase of 32% since 2004. At present, the over 60's age group owns the largest percentage of owner-occupiers compared with any other age group.
The survey has found that the value of housing assets will more than double from £14 billion in 2002/2003 to the equivalent of £32 billion by 2019/2020, with the south of England accounting for more than half of the value of residential housing.
Our view
The one thing that is constant on this Island is land. It neither expands or contracts. Therefore, if the population increases, the demand for land i.e. property prices will continue to increase.