The number of first-time buyers relying on the "bank of mum and dad" for financial help has hit a record high, with more than a third of homebuyers in England depending on money from their family: 34% of buyers needed cash or a loan from their parents in 2013/14 (latest available data) compared with just 20% in 2010/11. A further 10% of buyers relied on inherited wealth1.
London has become the most popular place for highwealth internationals to buy a second home: there are 22,300 HNWI (high net worth individual) second-home owners in London, compared to 17,400 in New York, 14,800 in Hong Kong and 6,400 in Paris.
High property prices, punitive stamp duty taxes, moving costs and stress mean that some homeowners in London are now adopting a ‘don’t move, improve’ attitude to property. 65% believe that there is more value in home improvement than in moving home according to a YouGov study. This is limiting supply.
Total property wealth owned by over-65s who have paid off their mortgages grew to a new record high of £1.072 trillion in February, according to Key Retirement. Since 2010 retired homeowners have seen property wealth growth of 37% – or £290 billion – which is worth around £66,000 on average for every homeowner. Owning a home has been worth around £9,400 a year for over-65s. Retired London homeowners own around £177 billion of property wealth.
Proposals to deliver the world’s first register of overseas companies and other legal entities that own property in the UK have been published as part of the government’s drive to build a “fair economy”. The UK would be the first country to have a public register showing the beneficial owners of property controlled by overseas companies.