The old keep getting richer as the young get poorer
Older people have become three times richer in the past 10 years as property prices have soared by 205%, while young people have become poorer, according to a report from the Bank of England.
Those aged between 55 and 64 have been the biggest gainers by their UK investment, with the booming price of property ensuring that their worth has gone up to a record £150,000.
However, the Bank also noted that the young, an age bracket which includes everyone under 34, are the biggest losers, with their net financial worth decreasing to almost zero as they are unable to get on the property ladder.
But older people have seen their wealth increase due to a variety of factors. Those who purchased property many years ago, when it was comparatively cheap, are now rich in assets as they have cleared off their mortgages and are generally debt-free.
Every day 15 houses are now sold for £1m or more, according to the Land Registry, and most of these are owned by the older age group. Four age groups – 35-44, 45-54, 55-64 and 65 and over – have benefited the most, with a typical 65-year-old worth £100,000 in 2005 compared to £40,000 in 1995.