A survey of 2,000 HNW property owners carried out by wealth manager Saltus revealed concerns were even higher among younger homeowners. Some 57% of those aged 25-44 were worried about the stability of their property’s value, compared to 11% of those aged 65 and over.
According to Savills, prime country house prices have fallen 7.8% – wiping £363,500 off the average value, signalling a slowdown at the top end of the market.
Meanwhile, data from the Office for National Statistics (ONS) showed that London house prices fell by 1.7% in the year to January.
The survey found that concern over property values was highest among those living in London (53%), followed by Scotland (51%), the North West (49%) and Wales (49%).
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Financial anxiety
Saltus said these concerns sit within a broader picture of financial anxiety. Some 51% of HNW individuals viewed inflation as the biggest risk to their wealth. Tax changes were cited as the next-biggest risk by 45% of respondents, while 30% pointed to interest rates – all three of which are directly linked to property affordability and value.
A further 7% of HNWIs identified mortgage rates in isolation as the single biggest risk to their wealth.
Henrietta Grimston, chartered financial planner at Saltus, said: “What these findings tell us is that for high-net-worth individuals, property is no longer the straightforward store of wealth it once felt. The combination of elevated mortgage rates, stamp duty changes, a potential mansion tax and geopolitical uncertainty has introduced a huge amount of anxiety, particularly among younger homeowners and those based in London.
“For many people, their home is both a place to live and a major part of their overall wealth, so concerns about values and the prospect of higher taxes naturally carry real weight. That is prompting more people to think carefully about how much capital they have tied up in property and how resilient their plans would be if costs rise further.”
