Individuals aged 50 to 64 hold property worth £679 billion within the UK private rented sector, according to analysis by Savills.

The research found that owner-occupiers aged 65 and above in the UK now hold a record estimated £2.587 trillion of net housing wealth.

These homeowners reside in properties with a combined value of £2.735 trillion, with the majority of this wealth (£2.038 trillion) held by individuals who have paid off their mortgages.

The analysis further reveals that individuals aged 50 to 64 hold an estimated additional £2.213 trillion of housing equity – including the £679 billion within the private rented sector. 

Consequently, the over-50 age group now controls a staggering 78% of all privately held housing wealth in the country.

The distribution of this wealth varies across regions, with the South East boasting the highest value of owner-occupier wealth. In this area, individuals aged 65 and over possess £475 billion in housing wealth, which surpasses the combined total for the entire North of England and Scotland by over £8 billion.

Moreover, the South East has experienced the most substantial growth in housing wealth held by individuals aged 65 and above over the past decade. During this period, their wealth has increased by £248 trillion, more than 2.5 times the growth seen in housing equity by those under the age of 50 in the region.

Half of the housing wealth in the South West is owned by individuals aged 65 and above, making it the region with the highest percentage of equity held by older homeowners. The South West’s popularity among downsizers and retirees contributes to this trend, driven by various lifestyle factors.

Savills’ findings highlight the significant concentration of housing wealth within the older population in the UK, reflecting the long-standing trend of property ownership as a key aspect of retirement planning.

According to Lucian Cook, head of residential research at Savills, the generational divide in housing wealth sits at the heart of a lot of the tensions around housing, and how these older home owners elect to deploy their equity has the potential to shape the market for the next generation. 

“Differing attitudes towards new housing delivery, property taxes and buy-to-let investment are all heavily influenced by the gap between the haves and have-nots,” Cook said.

“As we look forward, higher mortgage costs and rising rents mean we expect to continue to see the bulk of housing policy focused on the needs of younger households. 

“However, the provision of more retirement housing along with other incentives to make downsizing more appealing are also fundamentally important. 

“Such measures would help unlock much-needed family housing and equity that can be used to help younger generations to get on and trade up the housing ladder, especially given the vital role the Bank of Mum and Dad increasingly plays in  accessing the UK housing market for the first time.

“In the private rented sector, there is a delicate balance to be struck. With several private landlords at or approaching retirement age, too tight a policy squeeze risks creating further pinch-points in the availability of private rented stock,” Cook added.