Game of Homes - The rise of multiple property ownership in Great Britain

The briefing “Game of Homes – The rise of multiple property ownership in Great Britain” is authored by George Bangham and published by the Resolution Foundation, an independent research and policy organisation that focuses on low‑ and middle‑income households. The paper, released in June 2019, analyses how additional property wealth—second homes, buy‑to‑let rentals and overseas holdings—has expanded across the United Kingdom and what this means for wealth distribution, housing markets and inter‑generational equity.

In 2014‑16, additional property wealth amounted to roughly £941 billion (2018‑19 prices), representing about 15.8 % of total gross property wealth in Great Britain. Almost one‑fifth of all adults (5.5 million people) lived in families that owned extra property, up from 3.6 million in 2001. The total gross value of this wealth was close to £1 trillion, indicating a rapid increase of over one‑fifth within two years and a 54 % rise since 2001.

Buy‑to‑let (BTL) properties are the largest and fastest‑growing segment. Approximately 1.9 million individuals own a BTL, accounting for the majority of the extra‑property stock. Second homes are owned by about 1.4 million people. Overseas assets, including holiday homes and time‑shares, number around 970 000. Between 2008‑10 and 2014‑16, BTL ownership grew by more than 50 %, while second‑home ownership rose from 1.0 million to 1.4 million.

Ownership of additional property is heavily skewed toward high‑income households. In the top decile of income, 7.5 % own a second home and 13.6 % own a BTL, whereas less than 0.5 % of the lowest decile own either type. Among adults over 50 planning large bequests (over £500 000), additional property wealth is 41.6 times larger than for those with no bequest intentions, underscoring the asset’s role in wealth transfer.

Geographically, extra‑property ownership is most prevalent in the South‑West, London and the South‑East, reflecting higher household incomes in these areas. The private‑rented sector, driven largely by BTL landlords, shows greater regional disparity than second‑home ownership, with the East Midlands and London leading in landlord concentration.

Older cohorts dominate the current ownership landscape. Adults born in the 1950s have the highest prevalence of family additional property wealth (around 7 %). However, younger cohorts (born in the 1980s) are catching up, with ownership rates similar to those of the 1970s cohort. Over half (52 %) of all rental income is received by baby‑boomers (born 1946‑65), and a further 25 % by Generation X (born 1966‑80). About 10.8 % of working‑age adults plan to use income from extra property to fund retirement, indicating the asset’s importance in retirement strategies.

Since 2016, the UK government has introduced a stamp‑duty surcharge on second homes and begun phasing out mortgage‑interest tax relief for BTL landlords. These measures have already reduced new BTL mortgage issuances and lowered the share of house purchases made by landlords from 18.7 % (2011) to 11.4 % (recent estimates). The briefing notes that further policy action—such as maintaining higher stamp‑duty rates on additional properties, introducing targeted capital‑gains relief for sales to first‑time buyers, and reforming council‑tax concessions—could influence future ownership patterns.

The growth of multiple property ownership has contributed to a larger private‑rented sector, which often faces higher housing costs, lower security and greater environmental impact due to under‑occupied second homes. Concentration of property wealth among affluent households may exacerbate inter‑generational inequality and limit the ability of younger, lower‑income families to access affordable, energy‑efficient homes. Policymakers are urged to align taxation and regulation with sustainability goals, ensuring that housing resources are distributed more equitably and that new developments prioritize low‑carbon, affordable units.