Since 2001 the number of second home, buy to let or overseas property owners in the UK has doubled. 1 in 10 people now own a second property and since 2001 almost £1 trillion in wealth has been accrued by owning a second property. Source Resolution Foundation.
It found that just 37% of people born in 1980 had bought their main property by the age of 29 compared with 50% in 1960.
The Resolution Foundation report that between 2006 – 2008 buy to let property purchases grew by 58% and are the most common source of investment.
People born in the 80’s, 90’s and early 2000’s were reported to be able to more afford their main homes more than older generations but it is the older generation that struggled to afford their first homes are no in a position to own more.
The Resolution Foundation is looking for balance in the housing market and make it easier for first time buyers, as there are a lot of second home, buy to let and overseas property owners from previous generations and they feel that younger generations later life will start to depend on not what they earn but what they will inherit.
We have debated this issue before and each generation has not had it easy to get on the property ladder. Whether that was in the 50s, 60s and 70s with very strict lending rules, limited mortgage products and strict deposits, through to the 80s and 90s buyers with gigantic interest rates (quadruple what they are today) and prices doubling every 10 years through to the noughties and millennials of today with high prices and higher deposits.