The Treasury have predicted that house prices could plummet should we leave the EU following the 23rd June referendum.
Chancellor George Osborne dramatically revealed the research points to house prices falling between 10 and 18pc should we vote for a Brexit result. The figures are based on the Pound Sterling being 3.6 to 6pc lower over the next two years, assuming there is an economic shock following a vote to leave the EU.
The claims have caused a great deal of debate for people on both sides of the argument – and for those sitting on more neutral ground, too. The Bank of England, for example, have dismissed the claims as simply not true, stating that house prices are unlikely to be affected.
For those of us in later life and not planning on selling the family home any time soon, property price changes are still vitally important for one key reason. The higher the value of our homes, the greater the equity. That means a larger fund available to tap into in the future should we want or need to, or it can mean a larger inheritance for our loved ones when the time comes.
Whatever happens to house prices in the future, what we know right now is that house prices are up by 23% on what they were just ten years ago. In fact, the average UK home is valued today at £204,368, which is £18,324 more than in October 2007 – when prices last hit their peak before the financial crisis.
With concerns now being raised about the referendum result on house prices in the next few years, for those looking to utilise their tax-free property wealth to enjoy a cash boost in later life, now could be a good time to start investigating their options.
Speaking to an independent specialist in retirement lending is vital if you are planning on using your home to fund your retirement plans in the future. To discover your options and find the plan which meets your individual needs best, call the Bower team today on [tel].
Remember, by its very nature equity release will reduce the value of your estate and the amount of inheritance you leave. Your specialist will explain all of this to you during your free, no-obligation initial consultation.