Britons hold faith in house price rises to fund retirement
Britons’ love affair with property has left more than one million over fifties looking sadly on their retirement prospects.
According to a poll by insurer LV=, 12% of homeowners aged 50 and over are relying on capital growth from their homes to part-fund their non-working years.
The boom years of the UK’s housing market actually encouraged lower contributions to pension schemes in some cases, in the belief that house prices would continue rise.
The expectation continues despite the average home having lost £27,250 in value the past two years, with 29% of the 4,000 people questioned expecting prices to recover in three to five years.
Meanwhile, 17% are proposing to improve their homes to adjust their losses and 21% will save more for retirement.
LV= spokeswoman, Vanessa Owen, comments: “In a matter of months millions of pre-retirees have seen both their property and pension fund values battered.”
She adds: “Despite this, their confidence in the long-term value of bricks and mortar remains.”
Yesterday, Nationwide reported that the average price of a home increased by 0.5% in November, marking the seventh consecutive monthly increase and taking annual house price inflation to 2.7%.