Some recent research suggests that one in in 10 adults in the UK have a second property. Many of these properties are brought by buy-to-let landlords. The Resolution Foundation who conducted the research found that about 5.2 million owned an additional property between 2012 and 2014.
Those most likely to have a second property were the Baby Boomers –currently aged between early 50’s and early 70’s. These Baby Boomers own 52% of all the wealth held in second or additional properties, and most of them live in southern England.
Following on from the Baby Boomers the foundation found that Generation X, currently aged in their late 30’s to early 50’s accounts for 25% of wealth from multiple properties. They also found that Millennials, who were born after 1981, own just 3% of multiple properties. Millennials are the first group since property records began to have fewer properties than previous generations and fewer second properties.
“Contrary to the popular narrative, these second homeowners are rarely your typical middle-income worker shoring up savings or ordinary retiree boosting pension income. They tend to be Baby Boomers who are very wealthy indeed relative to their peers, living in the south and east of England.” said Laura Gardiner, senior policy analyst at the Resolution Foundation.
What makes second properties so attractive is that people with second homes not only have an investment that they can turn to in times of need. They also have a more reliable way of boosting their retirement incomes by renting property out. Many also see it as a way to boost to their incomes in the moment and support their families need for homes.
If you are thinking of a second property in Surrey or South West London to help you in times of need you can get in touch with Goodfellows. By making a Financial Services appointments you could ‘come in and find out how much you can afford’.
Your home could be at risk if you do not keep up the repayments