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Retirement And Hpc

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I just picked up on this quote by Niq in another thread, and thought it deserved it's own post.

'cos during that time, an ever-growing number of people with substantial assets will be retiring, and seeking to cash in. Which puts long-term downward pressure on asset prices. The long-term BTL bubble unwinds, creating over-supply.

I agree that this is going to be a massive social trend that will contribute to HPC.

It has been so difficult for anyone in their 20s or even early 30s to get into the housing market, that the vast vast majority of housing 'wealth' must sit with people in their 40s and above.

With dwindling pensions and retirement funds, many of these will want to release money from their properties, and many will need to bring this forward once the accepted long term outlook for house prices becomes negative.

Knowing human nature, it's likely that many people looked at that 400k or 500k sticker on their house as real wealth, and factored it in to their retirement plans as a safety net at least.

I agree with the OP that this social trend will be a millstone around the neck of HPI for a number of years.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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