With many of us in and out of lockdowns over the past few months, it was always going to be challenging for the housing market. Moving house was once an enjoyable time, with many excited to be sizing up, buying their first home or even downsizing. Nowadays it’s not only met with the usual stresses of dealing with solicitors and estate agents, but also navigating the different rules and regulations of a lockdown.
However, despite these additional challenges, some areas of the UK are seeing exponential growth in house prices, whereas others are seeing a dip in value.
How are the housing values being affected in the Midlands?
Across the nation, the cost of a house in the UK rose by a little over £3000 in past couple of months alone, with the property market hitting a new high. This is potentially due to the fact that many homeowners are now reassessing their housing needs, for example, many of us are now working from home so need a suitable space for this.
With many people wanting to move our of the capital and the attraction to living in London fading away quickly, couples and families are looking at further away locations that perhaps offer them more than what they’d get in London.
According to the ONS, London had the most muted annual growth rate of only 1.3%, while the East Midlands reported one of the sharpest annual changes, with house prices rising a whopping 4.2%! Will the Midlands as a whole become the new place for Londoners to relocate to?
How are over 65’s being affected?
According to a recent study by equity release experts Key, the over 65s have benefitted from a property wealth increase of more than £6,000 each on average in the past year. These increases come despite a year of uncertainty within the housing market and two national lockdowns.
They also found that the total property wealth owned by the over 65s who have paid off their mortgages is valued at a staggering £1.124 trillion, and that even with the coronavirus pandemic, homeowners have still benefitted from a strong year-on-year increase.
Will Hale, CEO at Key said: “Against this backdrop, we find millions of over-65s who have repaid their mortgages and are sitting on considerable unencumbered property wealth but may find that their retirement funds are not quite as healthy as they hoped. It is vital to get specialist advice and consider all assets when it comes to planning your finances through retirement as making smart choices can significantly improve your standard of living throughout later life.”
If you could potentially be sat on a pot of tax-free funds that you’d like to release, maybe for a holiday next year when restrictions are lifted further or for a renovation to your existing space, it’s possible that equity release could be for you!
