According to a comprehensive study of UK housing by Savills, £1.2trn of net housing equity - the portion of a home that is owned rather than mortgaged - is held in privately rented homes.
Private landlords, who account £1.4trn of housing value, have seen the total value of their properties increase by 64% in the past five years, according to the report.
But mortgage-free owner-occupied homes remain by far the largest store of wealth, accounting for almost £4.6trn of housing value, as an older generation of homeowners reaps the benefits of decades of house price increases, while many younger households are unable to access home ownership.
Since the credit crunch of 2008 we've seen the generation gap widen, with younger buyers increasingly struggling to get onto the housing ladder while older home owners live longer and accrue higher levels of equity through house price growth.
In Oxford, high house price to income ratios and new mortgage regulations suggest this pattern will become even more entrenched during the next decade. The government’s recognition of the role rental properties can make in addressing the housing crisis is to be welcomed, but is at odds with tax legislation that is forcing many private landlords out of the market.
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