Owned property in UK overtakes Italy's GDP as it hits £1.5 trillion
BABY boomers are sitting on £1.5trillion of property – more than the entire annual output of Italy.
Up to 6.3 million English over-55s own their home outright
The average cost of a house in England stands at £229,383 and 6.3 million English over-55s own their home outright putting them among the most property rich in the world – seventh on an international table.
Italy’s gross domestic product is £1.4trillion.
This stored wealth cannot be ignored: housing must become a primary part of retirement planning
Over a third of English over-55s own their home with no mortgage.
In 20 years’ time, their numbers in England are expected to rise from 16.2 million to 21.5 million and by 2036 they will be holding £2.9trillion in property wealth, researchers calculated.
What's happening to the UK property market?
The figure is based on only a modest annual house price increase of two per cent.
Over a third of English over-55s own their home with no mortgage
Even without any house price inflation, the population increase would take the total housing wealth of over-55s in England to £1.9trillion by then.
Cash in property should now be part of pension planning, says Simon Chalk of equity release firm Age Partnership which ordered the sums.
In 20 years’ time, numbers in England are expected to rise from 16.2 million to 21.5 million
He said: “We forecast that with only modest growth to values, £2.9trillion will be held in property.
“This stored wealth cannot be ignored: housing must become a primary part of retirement planning.
Simon Chalk said cash in property should be included in pensions
“Pensions will continue to cause a headache as the population ages.
“Adding property wealth to the mix could help alleviate that pressure.