Generation X, a smaller cohort, spent £3.5 billion whilst Baby Boomers spent more than double that, buying £8.58 billion worth of property in the same market.
The most popular area for Millennials and Generation X by volume is Islington, followed by Tower Bridge for Millennials and Kensington, surprisingly for Generation X.
Baby Boomers are more inclined to look towards the traditional ‘golden’ postcodes, with Kensington in first place whilst Marylebone is a popular destination for all ages, coming in third for Millennials and Generation X and second for Baby Boomers.
Millennials favour Riverside, Aldgate and Tower Bridge, while Generation X looks to Wapping, South Kensington and Tower Bridge. The Baby Boomers once again favour the traditional prime areas of Belgravia, Knightsbridge and Kensington, according to Knight Frank.
Liam Bailey, global head of research at Knight Frank explains:
“This is the first time Knight Frank has explored how much each generational cohort has spent acquiring property in Prime Central London. It is no surprise that Baby Boomers spent the largest sum on property investment in London in 2018. However, what will be interesting to see is how the gap between Millennials, Generation X and Baby Boomers reduces over the coming years as the opportunity for wealth creation amongst younger generations becomes more and more prevalent.”
“When it comes to purchasing prime property, age is more than just a number. Our analysis of purchases in prime central London shows different patterns emerging between the generations in terms of location and spend.
“Baby Boomer purchasers are more aligned to market performance in relation to volumes of sales – that is, as the market rises, so does their propensity to buy. However, it may also be inferred that they are a driving force in market performance. Generation X is the least responsive to changes in the marketplace in regards to volume of sales.
“However, the average spend of both Baby Boomers and Generation Xers remains impervious to market movements. One potential explanation is that budgets remain stable despite market conditions, and so when the market falls purchasers are able to acquire properties that would previously have been out of reach.”