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 increase in additional property ownership across Britain. The report outlines the implications of this trend on various generations and income groups, emphasizing the growing concentration of wealth in the property sector.

The total value of additional property wealth in the UK surged to nearly £1 trillion between 2014 and 2016, representing approximately one-sixth of all property value. Today, one in nine adults has family members owning additional properties, with the number of adults in families with such wealth rising by over 50% this century, reaching 5.5 million people.

The boom in multiple property ownership is primarily driven by the buy-to-let sector, which has expanded significantly since the early 2000s. Nearly 2 million individuals own buy-to-let properties, with the number of outstanding buy-to-let mortgages increasing fifteen-fold since 2000. The report notes that this rise coincides with a decline in primary home ownership rates, emphasizing the shift towards rental living in Britain.

The ownership of additional properties reflects household wealth, with owners typically being older and higher-income individuals concentrated in southern regions. Interestingly, younger generations are not as successful in accumulating primary property wealth compared to their predecessors, yet they are achieving similar rates of additional property ownership, indicating a shift in investment strategies.

Individuals acquire multiple properties for various reasons, including generating rental income, securing financial stability for retirement, and creating assets for inheritance. Over half of the rental income is received by the baby boomer generation, while one in ten working-age adults plans to utilize income from additional properties to support their retirement.

The report highlights recent policy reforms targeting additional property ownership, such as changes to tax reliefs and stamp duty. However, it also raises concerns about the growing inequality associated with property ownership, as wealth becomes increasingly concentrated among older generations and affluent youth, potentially exacerbating social disparities.

As the UK faces challenges related to housing security and affordability, the report calls for policymakers to ensure fair access to housing across generations. It emphasizes the need for equitable taxation of additional properties and suggests further reforms to enhance the security of the private rental sector. In summary, "Game of Homes" sheds light on the complexities of multiple property ownership in Great Britain, revealing its impact on societal structures and economic conditions. The increasing trend of property wealth accumulation poses critical questions for future housing policies and intergenerational equity.