By
Sean Poulter, Consumer Affairs Editor
19:25 EST, 5 June 2012
|
19:49 EST, 5 June 2012
Homeowners are sitting on a property goldmine worth £5.6trillion, a study has found.
The huge sum may offer some comfort at a time when many families and pensioners are struggling to keep pace with the biggest squeeze on the cost of living in 60 years.
Price rises on essentials such as food, energy and fuel continue to outpace any increase in incomes, while many do not have the money to invest in a pension to provide for a comfortable old age.
Small house, big price: This tiny property in Hackney, London, recently went on the market for £300,000
Yet homeowners have a fortune in terms of bricks and mortar wealth which they may – one day – be able to cash in.
During the consumer and house price boom of the 1980s and the early 2000s many homebuyers took out second mortgages to unlock the cash in their homes to improve living standards, buy new cars and take exotic holidays.
Pensioners also borrowed against their homes through the controversial and ill-fated Home Income Plans, which left many penniless and at risk of losing the roof over their heads.
However, in today’s double-dip recession, the £5.6trillion value of property remains largely untapped.
This is because families are less inclined to increase their home loan at a time when they might lose their jobs.
On the other side of the equation, banks and building societies are rationing their lending and pushing up interest rates, making borrowing difficult or less attractive.
The figures from property website PrimeLocation, which takes data from 15,000 estate agents across the country, show the South East (not including London) is top for property wealth, with £1.6trillion.
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Your house is only worth what someone will pay for it – today £5.6trillion, tomorrow who knows ?
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Is this the 4th or 5th time this non story has been proffered in the last week DM?
Still having problems recruiting journalists?
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Any house is only worth what someone else will pay for it. With more people wanting to downsize than upsize, prices will fall. Simple economics.
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” Homeowners are sitting on a property goldmine worth £5.6trillion, a study has found. ” Only if it’s saleable, and only if they have somewhere cheaper to go to. Otherwise, it’s just a way to justify inflated local charges.
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“Cash in” on value of property! If you live on England you’ll be lucky if it pays for your place in a Nursing Home in old age.
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