New statistics suggest that people aged 55 and over in the UK have more equity in their homes than the yearly GDP of Italy.
According to research conducted by Age Partnership, there’s £1.5 trillion of equity locked in the homes of those aged 55 and above, compared to the GDP of Italy which is £1.4 trillion. The adviser for retirement income also found that this amount is attributed to 39% of people in this age bracket who no longer have a mortgage. It is possible that more people who were surveyed will have significant equity, meaning that the amount could be even higher.
As the population of over 55s is expected to grow by a third during the next two decades, the equity figure will stand at £1.9 trillion, without taking into account the rising house prices. McCarthy and Stone, builders of retirement homes, state that 36% of people who are aged 65 or over in the UK are looking to downsize their home. This is equivalent to 4.3 million people.
Many of those wanting to downsize are unable to as there is a shortage of suitable housing to enable downsizing in this age group. As bungalows are a scarce commodity, they are generally worth 16% more than houses which are the same size but have stairs.
People who are considering downsizing for financial reasons may want to speak to a mortgage adviser who has taken CeMAP training, as they may be able to offer alternative solutions.
