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

The document "Game of Homes: The rise of multiple property ownership in Great Britain," published by the Resolution Foundation and authored by George Bangham, explores the significant trends in multiple property ownership within the UK. It highlights the implications this trend has for various generations and income groups, particularly in the context of ongoing discussions about housing sustainability.

The report reveals that the value of additional property wealth in Britain reached nearly a trillion pounds between 2014 and 2016, accounting for almost one-sixth of the country’s total property value. Approximately one in nine adults has some form of additional property wealth in their family, with the number of adults living in families with such assets rising by over 50% this century to 5.5 million people.

A major finding is the rapid growth of buy-to-let properties, which have become a significant component of multiple property wealth. Nearly two million individuals own buy-to-let properties, and the number of outstanding buy-to-let mortgages has surged fifteenfold since 2000. This trend is contrasted with falling rates of primary property ownership since 2003, highlighting a shift towards renting in the housing market.

The report notes that while younger generations have not matched the property wealth accumulation of their predecessors, they are achieving comparable rates of additional property ownership. For instance, 7% of adults in families with additional property wealth were born in the 1980s, matching the rate of the 1960s cohort by age 29. This indicates that multiple property ownership is becoming increasingly important for younger generations in terms of financial security.

Additional property ownership serves various financial purposes, primarily to generate income and secure retirement. Over half of rental income is received by the baby boomer generation, while many working-age individuals plan to depend on additional property income for their retirement. Notably, 10.8% of working-age adults stated they intend to rely on rental income, underscoring the role of additional property in retirement planning.

The rise in multiple property ownership has been linked to growing inequalities, with property wealth becoming concentrated among wealthier cohorts. Individuals in the top income decile are disproportionately likely to own additional properties, with 13.6% owning buy-to-let properties. This raises concerns about the widening wealth gap and the implications for social equity in housing.

In light of these trends, policymakers have begun addressing issues surrounding multiple property ownership, introducing reforms such as tax relief changes and stamp duty surcharges. However, the report emphasizes that further reforms are needed to ensure fair taxation of housing assets and to support first-time buyers, particularly in a landscape where younger generations face challenges in accessing home ownership.

The findings from the Resolution Foundation highlight critical aspects of multiple property ownership in the UK, emphasizing its implications for generational wealth distribution, economic security, and social inequalities. As the conversation around sustainable housing continues, understanding these dynamics will be essential for informing policy and ensuring equitable access to housing for all.