Despite falling house prices, retired homeowners still have £611.5bn of equity in their property.
This statistic highlights how much equity there still remains in the retired persons property market.
The property markets contrasts with the current squeeze on retirement income seen in today’s volatile market and economic conditions where rates on annuities and income drawdown products are falling.
Recent research has also found that the value of property equity belonging to homeowners aged 65 and over fell by £80.6bn between October 2008 and January 2009, with the average homeowner over 65 seeing the value of equity they have in their home fall by £21,377.
London homeowners aged 65 and over saw the highest decline for any region in England and Wales with equity in their homes falling by £38,057 while those in Yorkshire and Humberside experienced a decrease in value of £13,028. Regions which saw below average falls included the South West, North East, Yorkshire & Humberside, West and East Midlands and the East.
Even in this depressed market, the vast majority of retired homeowners still have considerable wealth tied up in their properties. Equity release schemes can still assist even in the current market.
They will in many cases not want to move home and in the current market the option of downsizing and raising money is less attractive when prices are falling and houses take longer to sell. The emotional wrench of moving house may be worsened by the financial loss of having to cut your price in a slow market.
Equity release has an important role to play in providing retirement income particularly when other sources are under pressure. This can be via a single lump or drawdown equity release scheme.
For advice on equity release schemes contact http://www.equityreleasesupermarket.co.uk
