Saturday, January 8, 2011

Held to ransom – or too heavy to support?

A south-east Englishman’s home is his fortune

The article cites analysis of UK homes over the past decade from Savills, and includes an interactive chart of regional 'worth' each year over the period. Notable points include: - London and the South East comprise more than a third of UK housing wealth. - Those aged over 45 account for approx. 83% of UK housing wealth. - 40% of equity in the UK housing market is governed by those aged over 65. - Savills' analysis claims that the average LTV across the whole of the UK residential market is 30%. You'll need to register (free for 10 articles a month) with the FT to read the piece, in respect of copyright.

Posted by dill @ 11:36 AM (1684 views)
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9 thoughts on “Held to ransom – or too heavy to support?

  • mark wadsworth says:

    “Homeowners aged over 45 account for about 83 per cent of the nation’s housing wealth, and the over-65s control about 40 per cent of the equity in the residential market.”

    So by subtraction, pensioners own 40% (and are slightly more than a quarter of adult population, but fair enough) and ye olde baby boomers aged 45 to 65 own 43%. And people aged 20 to 45 own a derisory 17%.

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  • So in another 10-20 yrs, when baby boomers are pensioners, and the avg’ age has increased due to medical achievements, the shift in property wealth will only be shifting upwards.

    Doesn’t get any better for FTB’ers! Suppose i should buy myself a lottery ticket tonight, you never know.

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  • mark wadsworth says:

    It is true that housing in South East/London are a third of all housing by value, but the South East/London also pays a third of all tax revenues, which illustrates yet again that a straight swap of LVT for all other taxes wouldn’t be particularly radical.

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  • “You’ll need to register (free for 10 articles a month) with the FT to read the piece, in respect of copyright.”

    Naaaaaah…. Alternatively you can whack the first sentence into Google and (usually) the first link is it…

    http://www.google.co.uk/search?q=Homes+in+the+south-east+of+England+are+worth+more+than+the+combined+property+wealth+of+owners+in+Wales%2C+the+Midlands%2C+Yorkshire+and+the+north%2C+highlighting+the+disparity+in+the+fortunes+made+during+the+boom+years

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  • “In spite of fears over the rise of the 100 per cent mortgage, the data clearly show the UK as a whole has a relatively low leveraged housing market with a loan-to-value of property ratio of about 30 per cent.”

    Relative to what? There’s no comparison offered either with past LTVs or LTVs in other countries.

    Also, aren’t the real questions what percentage of homes have high LTVs, what types of properties are most vulnerable, and where they’re located?

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  • @4 mr

    Indeed. But do it more than once, and you’ll have to clear out cookies first. Less hassle to have a free login, for me.

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  • Its not really surprising that the 20 to 45 bracket account for the least housing wealth surely? People have been buying houses for a long time and house prices have risen over the last 50 years. People have had families and bought bigger houses. If you argue that the boomers have ended up wealthy and are living longer, then that surely is just saying that things are improving. The 20 year olds now will live longer too

    Oh, just remembered, we are around peak oil, at the end of growth and the start of the decline… good timing boomers, you had the prize 🙂

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  • Well this 49 year old doesn’t own any of the property wealth having lost the lot in the crash, even though he did see it coming. The only real wealth I have or want in Britain is gold and silver. Anybody know of a commune I can move to in a nice quiet country that leaves it’s residents alone and doesn’t take 65% of your income in tax?

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  • i’m guessing articles from the FT and Times are more evidence of the north south divide… i’d be interested to see someone post a NOTW article and see who can access that!

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