Homeowners aged 50 or over are likely to have experienced house price growth of more than £7,000 since July, new figures have revealed.
Data from SunLife shows homeowners over 50 have seen their homes more than double in value in the past two decades from an average of £113,365 in 2000 to £240,681 in July.
But taking into account the latest figures from Nationwide, it would appear house prices have surged upwards even further in just the last few months.
The Nationwide House Price Index showed prices had increased by 2% from July to August and a further 0.9% month-on-month to September.
It means, said SunLife, the average home owned by people in their 50s or above could now be worth an average of £247,704 – which is a rise of £7,023 in just two months.
Funding the future
Simon Stanney, equity release director at SunLife said the increase would come as welcome news to many older homeowners who were worried about funding their future.
He 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.”
Indeed, its research showed of those still working, 43% said they didn’t think they would have enough money for retirement. Amongst those who were already retired or semi-retired, 15% didn’t think they would have enough money to last.
SunLife’s data also showed 20% of over 50s were planning to use their property to fund their retirement.
“Downsizing is one way to release the equity tied up in your home,” said Stanney “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.”
Equity release allows you to access the value tied up in your home without having to move. You can even take out a plan if you have an outstanding mortgage.
It is important you take independent financial advice if you’re considering equity release.
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