Benefits of soaring housing values to be shared with younger generations

Baby boomers are set to share their housing wealth with millennials, according to a new academic report. The report states that around 80% of the significant increases in housing value enjoyed by those over 65 will be shared with younger generations. The study also reveals that bequests worth £110bn are made each year in private transfers, with older generations passing down wealth to address inequalities. Increases in property prices were analysed as a key driver behind this wealth transfer. Between 2005 and 2015, aggregate gross housing wealth increased in 2015 productivity-adjusted prices from £5,248trn to £5,934 rn. The findings come at a time when millennials are facing a housing crisis, with only one in five adults under 40 believing they will be able to buy their own home in the next decade. 

The Daily Telegraph (14/10/2023)