Saturday, October 4, 2008
One third of consumers relying on property to fund their retirement
Recent fluctuations in the housing market mean people can no longer look with certainty at using their property to fund retirement. David Millar discusses the situation. A survey taken by Friends Provident before the credit crunch began showed that a third (33%) of consumers were depending on property or equity release to fund their retirement. At the time of the survey, the average property owner probably believed that their house would be worth more in a year's time, felt that property prices would continue to rise and would have been confident that there would be someone around prepared to offer the asking price if they wished to sell. The market today is a very different place, with house prices falling as sellers are obliged to cut their asking prices in order to find buyers.