Buy-to-let property is driving growth in additional property ownership in the UK, according to Resolution Foundation report
The number of people who own buy-to-let (BTL) property in addition to their primary residence grew by 58 per cent in the eight years to 2016, a report from the Resolution Foundation revealed.
The think-tank’s research showed that BTL is the most common type of additional property ownership and the fastest-growing. The number of people owning BTL additional property climbed to 1.9 million in 2014-16, up from 1.2 million in 2008-10.
Of those who own a BTL additional property, the proportion owning more than one was 32 per cent and more than three was 10 per cent.
The report covered a wide range of trends in ownership of additional properties in Great Britain. The value of all additional property was £0.9trn in 2014-16, or 15.8 per cent of the country’s gross property wealth. This represented 20 per cent growth in additional property wealth over two years.
Higher income households were more likely to own multiple properties as were those in the South West, London, and the South East—although additional property ownership is spread across all regions.
The proportion of adults in a family that owned additional property was 11.9 per cent in 2014-16, up from 7.9 per cent in 2001. The growth corresponded to a fall in the proportion of adults living in a family that owns no property.
While younger people are less likely to own property compared to older generations, they are more likely to own additional property.
For those born in the 1980s, 37 per cent lived in a family with property wealth by age 29 and seven per cent lived in a family with additional property. For those born in the 1960s, 50 per cent lived in a family with property wealth by age 29 and again seven per cent owned additional property.
The number of people owning second homes (not BTL) increased by 40 per cent to 1.4m, up from 1m, in the eight years to 2014-16.
The research further noted that new BTL mortgage issuance has fallen since tax reforms were introduced in 2016.
The report, ‘Game of Homes: The rise of multiple property ownership in Great Britain,’ drew on a range of household survey data including on the ONS Wealth and Assets Survey and the English Private Landlord Survey. It was produced by the Resolution Foundation and funded by the Nuffield Foundation.
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