Young homeowners are an average of seven times wealthier than those who are renting, according to insurance company Aviva.
Aviva’s data, of 25-35 year olds, revealed that those who own their house held assets worth an average of £98,686. In contrast, renters own assets of just £14,258.
In the future, it may be possible for renters to catch up with homeowners, but only by a little. By 65 years old, renters own an average of £62,258 in assets; however, homeowners are still miles ahead with assets of £306,147; around five times higher.
The rising number of young people in Britain struggling to get into the housing market is widening the gap between homeowners and renters. High deposits are forcing people off the property ladder.
Housing evaluation firm The Model Works’ Brian Hall says that this will “group people into a property owning elite and those unfortunates who are forced to rent from them. It will hit young people at the most fundamental level in terms of their ability to put a roof over their heads, pay for the essentials, start a family and plan for the future.”1
However, it may be possible for renters to invest in the market, in other ways.
A number of financial businesses currently provide the opportunity to invest in the housing sector, without having to own a house.
Castle Trust offer their Housa product, and Hearthstone Investments can also deliver the chance to invest a minimum of £1,000 into the property market, allowing renters to profit from the increase in house prices, without the need to buy a house.
1 http://www.justlandlords.co.uk/news/Homeowners-Wealthier-Than-Renters-1479.html