Homeowning equity among over 55s rises
18 September 2019
An increase in homeowning equity
The home-owning wealth figures of those who are retired and approaching retirement have been released by Canada Life. The international financial services recently reported that the amount of equity held by homeowners aged 55 and over is now £382 billion, collating its figures from public data on UK property homeownership from the Office of National Statistics and the latest Nationwide Building Society house price figures.
Reasons for increasing value of homeowning equity
Canada Life has put the growth in home-owning equity down to two key factors:
- Rising house prices, which have pushed up the value of property equity owned by those approaching retirement age.
- The increase in second-home ownership; the Resolution Foundation, which provides analysis and action on living standards, reported in 2017 that one in ten adults has multiple sources of property wealth, a 30% increase between 2000-02 and 2012 – 14.
The implications for retirement finances
“As those aged 55 and over hold more and more property wealth, so property is likely to be a significant factor in financing our increasingly long retirements,” commented Jan Johnson, director of 55+ Equity Release. “But property will only ever be one element of retirement finances, so it’s important to find an independent equity release adviser who will look at your complete financial picture and advise honestly and transparently as to whether it is a viable and appropriate option for you to consider.”
The rising value of homeowning equity held by those aged 55 and over shows the increasing significance that it is likely to play in retirement finances moving forwards.