A Nation of Inheritors? Housing Inheritance, Wealth and Inequality in Britain

Abstract

This paper examines the growth of housing inheritance in Britain since the late 1960s using Inland Revenue statistics. It also uses survey evidence to examine the uneven distribution of inheritance by housing tenure, class and region, and assesses its implications for consumption cleavage theory. It argues that at present the social distribution of housing inheritance is far from equal, benefiting home owners and the professional and managerial classes, but that, over the next 40 years, it will become much more widespread as the post-war generation of home owners bequeathes property. It is likely, however, that the children of tenants will be generally excluded from housing inheritance which is largely confined to the children of home owners.

The Revival of Private Landlords in Britain’s Post-Homeownership Society

“…Indeed, since the early-2000s the inheritance of housing assets has accelerated further and also contributed to a greater distribution of inheritance across the population (Karagiannaki 2015). Traditionally, legatees have tended to sell housing property in order to distribute the proceeds (Hamnett 1991). For inheritors in the 2000s, transferring an inheritance back into an extra property has presented itself as a lucrative opportunity in light of growing rental demand supported by flexible rental contracts, limited rent controls and poor returns offered by other savings and investment products.…”

Equity Inequity: Housing Wealth Inequality, Inter and Intra-generational Divergences, and the Rise of Private Landlordism

“…Much existing literature on housing wealth distribution in what may be called advanced "homeowner societies" (Ronald 2007), was published under considerably different contexts at the turn of the century (see Forrest, Murie, and Williams 1990;Hamnett 1991Hamnett , 1999Hancock 1998;Henley 1998). While there has been recognition of inherent inequalities (see Henley 1998), past research has often focused on the historical role of growing homeownership in diminishing wealth disparities and the more widespread distribution of housing equity 1 compared to other assets (Hancock 1998;Hamnett 1999).…”

“…While there has been recognition of inherent inequalities (see Henley 1998), past research has often focused on the historical role of growing homeownership in diminishing wealth disparities and the more widespread distribution of housing equity 1 compared to other assets (Hancock 1998;Hamnett 1999). This has resulted in optimistic outlooks towards potentially diminishing housing wealth inequality (Hamnett 1991) and the role of housing assets in creating widespread wealth accumulation (Hancock 1998;Malpass 2008). Past contexts of strong economic and labour conditions, sociopolitical backing for homeownership, alongside supportive policies led to a "golden age" of increasing homeownership rates across Europe and North America -albeit differing in precise timing and conditions (Conley and Gifford 2006;Forrest and Hirayama 2009;Kurz and Blossfeld 2004).…”

Living in Assets Without Limits: Towards New Principles for Policies on Housing

“…Hamnett (1991) was one of the first emphasizing this intergenerational effect. However, the role of housing and financial markets changed over time.…”