Parents should skip a generation and help their grandchildren get on the property ladder, the housing minister has said.
Gavin Barwell said that his own mother plans to leave her estate, which includes a £750,000 home, to her five grandchildren.
Mr Barwell suggested that others should do the same, as skipping a generation would combat ‘inter-generational unfairness’.
He made his comments at a fringe meeting at the Conservative Party Conference last week, the Daily Telegraph reported.
Mr Barwell’s comments come as new research by retirement income specialist, Age Partnership, reveals that over-55s in England have more wealth locked away in their homes than the entire annual GDP (gross domestic product) of Italy.
Homeowners in England in this age bracket currently own £1.5 trillion worth of property – £0.1 trillion more than Italy’s annual GDP, £0.3 trillion more than Brazil’s, and £0.6 trillion above Spain.
Simon Chalk, equity release expert at Age Partnership, comments: “A small fortune is locked away in the houses owned by the older generation in England.
“Over the next 20 years housing wealth will become increasingly important, as the baby-boomers generation reach retirement en masse. We are forecasting that with only modest growth to property values, £2.9 trillion will be held in property wealth in England in two decades time – these sorts of figures just can’t be ignored.
“Pensions will continue to cause a headache as the population ages. Adding property wealth to the mix could help alleviate that pressure,” he adds.