Conversations on the Housing Crisis: A Comedian’s Perspective
Recently, I found myself deep in conversation with a comedian about the ongoing housing crisis in Britain. It may sound like the setup for a darkly comedic punchline, but sometimes humor is the only logical reaction to what seems like one of the nation’s most urgent and complex issues: how can anyone in the UK afford to secure a place to live? Increasingly, the answer hinges on whether one’s parents can financially assist, and there’s a substantial amount of wealth poised to be passed down.
The Sunday Times describes British baby boomers as “the wealthiest generation in history,” with approximately a quarter of them possessing assets worth over £1 million. In the coming decades, those currently in their 60s to 80s are projected to transfer an astonishing £5.5 trillion to their children and grandchildren, an unprecedented flow of generational wealth that business writer Ken Costa dubs “the largest transfer of generational capital ever witnessed in human history.” Not all boomers are part of the aristocracy or affluent landowners; many are middle-class individuals who have thrived due to free university education and robust pension plans, all while getting onto the property ladder before home prices soared.
My stand-up friend posed an interesting dilemma: while it may seem like a windfall if you’re set to inherit your parents’ modest Right to Buy terrace in the suburbs, what happens if your parents live longer than anticipated? They might need to remortgage their home to cover social care fees or medical expenses. What if family disputes arise over the inheritance, leading to a legal battle that consumes the assets? Or, what if your parents decide to spend their savings on a lavish round-the-world cruise? The possibility of them being inspired by shows like Babygirl, leading to a divorce and remarriage to a partner with extravagant tastes, is not out of the question. “It’s like Succession, but with inherited houses on the line,” my comic friend quipped. Just kidding—sort of.
For many in my generation, openly discussing the prospect of receiving family money feels somewhat taboo. Yet, with nearly half of British boomers holding over £500,000 in assets, a greater number of millennials could be in line for a significant inheritance than one might assume.
- Some may have already noticed the early signs of this wealth transfer: friends who can afford to remain in low-paying creative jobs or pursue artistic endeavors without the burden of exorbitant rent.
- New homeowners who can suddenly manage the deposit on properties that were previously out of reach.
- Parents who feel financially secure enough to have children, thanks to grandparents covering the costs of fertility treatments, childcare, or even family vacations.
Financial Assistance from the Older Generation
According to a survey conducted by Saltus, a wealth management firm, a staggering nine out of ten older respondents with assets exceeding £250,000 are currently providing financial support to their adult children and grandchildren, even for smaller expenses like energy bills and university fees.
While this generosity is commendable, it relies heavily on the availability of liquid assets—those easily convertible into cash. If the family wealth is primarily tied up in property, then you’re left hoping for your parents to downsize and sell while they’re still alive, or, more morbidly, for them to pass away. This is a rather grim reality that no child should have to consider.
Modern Britain has been labeled an “inheritocracy” by scholars such as Eliza Filby—a society where merit and hard work seem irrelevant as long as you have the cushion of parental support. It might even be dubbed a “necro-inheritocracy.” During her research for a book on the subject, Filby spoke with a woman whose parents are now in their 70s: “In a decade, we’re likely to have more money than we know what to do with. It’s morbid, but it’s true.”
While it’s easy to resent the hypothetical “Richie Rich” poised to inherit a lavish Notting Hill townhouse upon the demise of their wealthy parent, what if you find yourself in the position of wondering whether your parents will share some of their fortune before they pass? Or how much you might inherit if they were to suddenly die? It’s a morbid contemplation but one that highlights the financial fragility permeating life in the UK today. As my comedian friend bleakly observes, we are a generation reliant on another aging out, just to feel a semblance of financial stability.
Zing Tsjeng is a journalist, non-fiction author, and podcaster.
