Halifax Financial Services (HFS) estimates that £360bn in today's money of housing assets will pass from one generation to another over the next 15 years and believes that this transfer of housing wealth is the largest of its kind recorded in the UK.
HFS calculates that the value of housing assets inherited every year will more than double from £14bn in 2002/3 to £32bn in today's money by 2019/20, with 60% or £32bn of the total value of all estates (£54bn) in 2019/20 being accounted for by housing. In addition, the number of estates with property assets is expected to increase from (104,950) or 59% of the total in 2002/3 to (115,347) or 65% in 2019/20.
Ray Milne, Managing Director of Halifax Financial Services, commented: "The amount of housing wealth inherited is expected to double in 15 years, reflecting demographic changes and the passing away of the first mass generation of homeowners. Housing wealth will undoubtedly assist the next generation to provide for their pension. But it does not, by any means, reduce the need to save for the future, including making provision for retirement".
