The “baby-boomer” generation (62 to 80 years of age) is sitting on £3.84 trillion in UK property wealth according to research by estate agent Savills.
Around £2.92 trillion is held in main family homes with the rest in buy-to-let property investments and other residential properties such as second homes.
For context, the annual gross domestic product (GDP) of the UK – in other words the total value of all the goods and services created in Britain each year – is just over £3 trillion.
Lucian Cook, head of residential research at Savills, comments: “Housing is clearly a massive store of wealth in the UK, especially for older homeowners who hold high proportions of both owner-occupier and buy-to-let housing wealth. Much of it is concentrated in London and the Southeast, where owner occupiers aged 60 plus hold just over £1 trillion in net housing wealth.”
Property might be the biggest asset for many families, but it’s only one part of the bigger picture. It’s helpful to think about how it sits alongside other investments and your future plans.
Rising house prices mean more families could face inheritance tax
Recent headlines have highlighted a quiet but significant shift in the UK tax landscape: inheritance tax is affecting more families than ever before.
One of the main reasons is simple: house prices have risen significantly while tax thresholds have remained frozen.
The standard inheritance tax threshold has been fixed at £325,000 since 2009, and it is currently expected to remain unchanged until at least 2031.
During that same period, property values across much of the UK have grown considerably. As a result, many estates that would once have fallen below the threshold are now gradually being drawn into the inheritance tax net.
When the family home tips the balance
For many households, the family home is the largest single asset they own.
Research shows that property can account for nearly half of the wealth in estates paying inheritance tax in London, with similarly high proportions across the Southeast and East of England.
This means that even families who do not consider themselves particularly wealthy may find the value of their home pushes their estate into inheritance tax territory.
It’s a trend reflected in the number too. Recent figures show inheritance tax receipts continuing to climb, with HMRC already collecting £7.7bn during the first eleven months of the 2025–26 tax year.
Analysts say the increase is largely due to rising asset values and frozen thresholds, which are gradually pushing more estates above the tax-free allowance.
Why planning matters
Inheritance tax is currently charged at 40% on the value of an estate above the tax-free threshold, although additional allowances may apply in certain circumstances.
For example, passing a main residence to direct descendants can provide an additional residence allowance. However, even with this extra relief, rising property values mean some estates are approaching the limits sooner than expected.
For many families, the key step is simply understanding the potential exposure early. That’s why regular reviews of your will, your financial plan, and your estate arrangements can make a big difference. It’s about having everything aligned with your long term intentions.
Thinking about the next generation
Inheritance planning isn’t just about reducing tax. It’s about making sure your estate passes on in a way that feels right for you and your family. And because the family home often carries so much personal meaning as well as financial value, understanding how it fits into your overall plan can bring real peace of mind.
If you would like to review how the value of your home fits into your overall estate planning, your independent financial adviser can help you explore the options available. [email Insight button]
Sources and further reading
Older generations ‘holding onto most of the UK’s housing wealth’ as market stalls | The Independent
UK’s Over-60s Hold £3.84 Trillion in Housing Wealth, Savills Analysis Reveals – British Brief
Inheritance Tax nil-rate band and residence nil-rate band thresholds from 6 April 2026 to 5 April 2028 – GOV.UK
Family ‘seven year’ rule after inheritance tax freeze sees more paying | Personal Finance | Finance | Express.co.uk
Inheritance tax – Office for Budget Responsibility
The Morning Briefing: Treasury on track for record IHT haul as receipts reach £7.7bn | Money Marketing
Disclaimer: information is based on publicly available data and government announcements at the time of writing (April 2026) and may be subject to change.