Over 50s finance provider SunLife says the fact that house prices have risen for at the highest rate since 2016* could be welcome news for the many older homeowners who are relying on property wealth to fund their retirement.
SunLife’s data reveals that homeowners over 50 have seen their homes more than double in value over the past 20 years, from an average of £113,365 in 2000 to £240,681 in July.
According to Nationwide, house prices rose by 2% from July to August and a further 0.9% month on month to September, meaning the average over 50s home could now be worth £247,704 on average – a rise of £7,023 in just two months.
Simon Stanney, equity release director at SunLife, said: “Our Finances After 50 research shows that one in four homeowners over 50 say they are worse off than they expected to be at this time in their lives and are worried their money will run out before they die. Of those still working, 43% say they don’t think they will have enough money for retirement while 10% say they ‘don’t know’.
“Amongst those that are already retired or semi-retired, 15% don’t think they have enough money to last.”
SunLife’s data also shows that 20% of over 50s are planning to use their property to fund their retirement, so could benefit from the recent rise in property values.
Stanney added: “Downsizing is one way to release the equity tied up in your home, but our survey reveals that more than half of older homeowners don’t want to move, so for those homeowners over 55 who need to boost their finances but don’t want to move, equity release can offer a solution.”