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Dave Beans

"over 45's Control 83% Of Uk's Housing Wealth"

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http://www.dailymail.co.uk/news/article-1345285/Homes-south-worth-Wales-Midlands-north-combined.html#

If you live in the south-east of England and own a home you are king of the UK property market, according to research.

Homes there are worth more than the combined property wealth of owners in Wales, the Midlands, Yorkshire and the north. Analysis shows the south-east, including London, has benefited the most during the boom years over the past decade and contains a third of all housing wealth in the UK.

The study by property consultancy Savills reveals Surrey is the most valuable county, with a housing market valued at £130billion. Kensington and Chelsea is London's most affluent borough with property valued at more than £63billion.

The borough has half the residents but double the value of housing in Bristol and is worth more than £50million a hectare. Every homeowner has benefited over the past decade, but the housing crash wiped about £600billion off the value of homes in 2008 and 2009. Last year the market recovered by £230billion. The analysis shows it is the older generation that has mostly enjoyed the rise.

Homeowners aged 45 and over account for 83 per cent of the nation's housing wealth and over-65s control 40 per cent of the equity in the residential market. While homeowners under 35 hold just five per cent of the equity in their homes.

Lucien Cook, Savills' director of residential research, told the Financial Times: 'The big question will be how, and if, this wealth will be redistributed to a younger generation.'

Currently, the outstanding mortgage debt is about £1,250billion, while the net wealth held in residential property has risen from $1,400billion to £2,900billion in 10 years.

Savills believes the prices gap between north and south will grow again. Mr Cook insisted that although northern regions have risen the most over the decade, prospects are 'much brighter' for the south over the next five years.

The study also revealed:

  • There has been an increase of 109 per cent of owner-occupied homes since 2000.
  • The proportion of London housing made up of property worth more than £500,000 is now 14 per cent.
  • Six in 10 buyers at the very top of the market come from abroad.

Mr Cook said: ' The prime central London markets have a proven track record as a safe deposit for international investors. We do not expect this position to be challenged.'

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Won't the younger generation, inherit at some point?

Not if their parents / grandparents live longer, and have to sell their homes to pay for care...

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Won't the younger generation, inherit at some point?

Some may benefit but not everyone.

In my case, my parents own a modest home and I have 5 brothers - I'm not planning on retiring when they pass away.

I also think that the pensioners of today will spend every last penny they've got.

Most will cash everything in to get an annuity that you can't cash-out again.

I also think that the Boomers have a belief that "I might as well enjoy myself while I can" or "I worked for it, so I might as well spend it" and give none of it away.

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Don't forget it's only on paper, this just highlights the joke that is the banking system and why they are so desperate to prop it up. The price does not turn into money until you sell the house. Any sort of a significant drop in prices and the banks are insolvent.

I was in an affluent part of london recently and area I visit every 6 mnths or so and there were a lot more for sale signs than ever before.

The younger generation just have to refuse to buy.

I still think there could be a huge crash at some point. Unemployment and inflation are the keys.

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Awesome figures but they are hardly surprising.

The younger generations have little or no chance of ever catching up.

Rubbish....what in your mind means catching up......the younger generations have everything going for them, YOUNG and healthy means far more than old wealthy, sick and decrepit.... our youth is our future....never forget it. ;)

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Won't the younger generation, inherit at some point?

not if all the money is spent on Thai strippers, or other foreign stuff

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planning on retiring when they pass away.

I also think that the pensioners of today will spend every last penny they've got.

Most will cash everything in to get an annuity that you can't cash-out again.

I understand that the stats show LESS property wealth being passed on now than in the past as it is required to pay for care etc instead.

I think that 15 years from now, when more or less the electoral see-saw swings in the favour of people born since 1970, it is plausible that governments from then on will not care very much for the boomers in their old age, it is very easy to see all this paper boomer wealth being lost, and I cannot think of a generation less intellectually or practically suited to dealing with this problem

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So people who have lived in their homes longest and paid off more years on the mortgage have greater equity in their property than the rest of the population.

When has this not been the case ?

Do people actually get paid real money for writing this stuff ?

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And as it was in the beginning so shall it ever be.

As each generation rolls by the one before it will complain until it inherits and then the next will complain...and the beat goes on and on and on and on and on and on and on....................................

Yawwwwwwwwwwwwwwwwwwwwwwwwnnnnnnnnnnn

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When it says "home owners" does it mean those without mortgages? If so, the figures are unsurprising.

Also, "homeowners under 35 hold just five per cent of the equity in their homes" doesn't seem particularly surprising if we are talking about those renting from the bank. Early on in your life you are paying more interest than capital.

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They were saying on Sky News earlier that the average age of the FTB is now 37, the news just rolled off the presenters tongue like nothing was wrong with it.

The country ought to be ashamed of itself but most people are too busy with their snout in the trough to care.

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20% less next year....and the under 35s wont even notice the drop...but the older ones will.

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Optimism is great, but in relation to the barriers which currently surround the average British youth I'd say, it's misplaced (unless daddy is rolling in it), sorry.

And please, no more winks it's er annoying in the extreme. ;)

Pardon me for being rude......forget daddy, daddy has had his day.....the vast majority (growing daily) are the youth...stop dithering and start doing....or forever regret what might of been.....the youth of the past fought and won, what about the youth of our future.....we need you.

When the going gets tough the tough get going. ;)

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When it says "home owners" does it mean those without mortgages? If so, the figures are unsurprising.

Also, "homeowners under 35 hold just five per cent of the equity in their homes" doesn't seem particularly surprising if we are talking about those renting from the bank. Early on in your life you are paying more interest than capital.

People with mortgages are the legal owners of the property, so I suspect home owners refers to mortgaged properties as well as those owned without a mortgage. Have a look at a Title Deed at the Registered Owners part.

https://www.landregistry.gov.uk/www/wps/QDMPS-Portlet/resources/example_register.pdf

All this nonsense and about 'home owners' not being the owners is just HPC wishful thinking.

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And as it was in the beginning so shall it ever be.

As each generation rolls by the one before it will complain until it inherits and then the next will complain...and the beat goes on and on and on and on and on and on and on....................................

Yawwwwwwwwwwwwwwwwwwwwwwwwnnnnnnnnnnn

Erm, but it really is different this time RB :lol:

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They were saying on Sky News earlier that the average age of the FTB is now 37, the news just rolled off the presenters tongue like nothing was wrong with it.

The country ought to be ashamed of itself but most people are too busy with their snout in the trough to care.

37 for FTB is not bad. In the past people started work at 14 today its 24. In the past people got married at 20 today its 30. In the past people became FTB at 27 today its 37. In the past people lived till they were 70 today its 80. Today people develop and mature more slowly than in the past . Its called progress (i think)

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I ought to come to the rescue of the boomers I think... (before you ask I am 35 and renting).

I don't think the problem is with people who bought 20 or 30yrs ago cheap and now there house is "worth" a fortune. In the past 30yrs there has been a considerable wage inflation (and inflation) and so houses may have been cheap then, it was still a big commitment and they probably had to work hard to pay it off, together with episodes of very high IR.

I think the problem is with people who bought 10yrs ago for half or a third of what houses are now worth, because in the past 10yrs there has been no noticeable wage inflation, IR have been relatively low and there is therefore no reason whatsoever why house prices should have doubled or trebled.

Had I know, 10yrs ago (when I came to the UK) I could have bought (with a near 100% mortgage) two of the houses I am today looking at buying (4 bed detached around Bristol) and with the money I have been able to put aside in the past 10yrs I would own them both outright. Instead I saved meticulously over the past 10yrs (while renting) and ... I can barely put down a 50% deposit on only 1 of the very same 4 bed detached I could have bought 10yrs.

The people who bought 10yrs ago have not worked to repay there house any harder than I have worked to save the same amount but to only put down only 50% deposit, there lies the problem... and people entering the job market today do not earn more than they did 10yrs ago, there lies the problem too...

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ahhhh we're facked. We're literally facked. Life expectancy is on the rise these guys aren't freeing up their homes anytime soon.

I don't know why I bother working. I can't do anything with the money I earn. Sod this I'm going to talk the gf about spending a few years abroad before we get too old.

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I ought to come to the rescue of the boomers I think... (before you ask I am 35 and renting).

I don't think the problem is with people who bought 20 or 30yrs ago cheap and now there house is "worth" a fortune. In the past 30yrs there has been a considerable wage inflation (and inflation) and so houses may have been cheap then, it was still a big commitment and they probably had to work hard to pay it off, together with episodes of very high IR.

I think the problem is with people who bought 10yrs ago for half or a third of what houses are now worth, because in the past 10yrs there has been no noticeable wage inflation, IR have been relatively low and there is therefore no reason whatsoever why house prices should have doubled or trebled.

Had I know, 10yrs ago (when I came to the UK) I could have bought (with a near 100% mortgage) two of the houses I am today looking at buying (4 bed detached around Bristol) and with the money I have been able to put aside in the past 10yrs I would own them both outright. Instead I saved meticulously over the past 10yrs (while renting) and ... I can barely put down a 50% deposit on only 1 of the very same 4 bed detached I could have bought 10yrs.

The people who bought 10yrs ago have not worked to repay there house any harder than I have worked to save the same amount but to only put down only 50% deposit, there lies the problem... and people entering the job market today do not earn more than they did 10yrs ago, there lies the problem too...

Good post Frenchy, it in a roundabout way it kinda summarises what most on here are talking about.

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its not the fact older people own all the wealth, its about the people that wont inherit anything.

some people here seem to think its quite acceptable that people that wont inherit homes will never own one, this is what the problem is. i dont care what wealth anyone has, i just want a chance to get a piece of it, so do millions of others. However no-one gives a damn because they are all right jack and the ladders been removed.

people cant even get council houses which is what put half the homeowners on the ladder. They cant get decent jobs, they have no pensions, there wages are an absolute pittance, there rents are taking up over half there take home pay, the council tax is eating some 15% of a min wage after allready taxed income.

people do the smart thing, sit on the dole, you realy are better off, there is no future for you hasint been for about 15 years. Its realy insulting that hard working people that go out there and graft everyday have absolutely nothing to show for it. DONT WORK YOUR JUST ENCOURAGING THEM TO TAKE THE PISS OUT OF YOU SOME MORE.

dont work until its worth working and you have oportunities once again, dont work until you get paid more than someone on the dole, dont work until you can with your wage buy a home to live in or be giving a subsidised council rent that allows you to save.

Work for min wage does not pay, dont even get out of bed unless you get 400pw , thats what you need to be in with a chance of doing more than just paying your bills.

Stop your own nighhtmare.

Edited by homeless

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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