Assetz® News » HOME | RSS Feed FEED | LIST ALL ARTICLES | ASSETZ HOMEPAGE
Investment Property News from Assetz

Assetz® Property News Service

Baby-boomers set to push UK property market

21st March 2006 | back to article listings BACK    print this article PRINT

It has been claimed that the UK's property market is set to benefit from an explosion in interest from baby-boomers.

According to new research carried out by Prudential and Datamonitor, the post-war generation who were born and grew up in the aftermath of the Second World War are about to start looking for the best retirement packages, with second homes high on their list of priorities.

The study discovered that their homes are currently worth a combined £543 billion across the UK and that figure is set to increase over the next 15 years to £1,425 billion as the youngest of the baby-boomer generation reach retirement age.

An increasing number of people are considering investing in property as a way to supplement their income when they retire, with many believing that a pension will be inadequate for their needs. And it appears that the baby-boomer generation shares that sentiment, as many are preparing, or have already, invested in property to provide them with a regular income in their retirement.

"Property can form a great part of a retirement planning portfolio," commented Ali Crossley, director of lifetime mortgages at Prudential UK.

"It may be too late for people approaching retirement to build up a supplementary source of income using a pension, savings or investments. However the equity tied up in their homes could be instrumental in boosting their funds."

And it appears that a move to release that equity is exactly the move that many baby-boomers are planning over the coming years.

With the arrival of A-Day coming ever closer and the number of people who have invested in self invested personal pensions (Sipps) remaining high despite the chancellor's announcement in the pre-Budget report at the end of 2005, it appears that many people approaching retirement age are about to free up the considerable amount of equity tied to their homes.

The number of people investing in second homes, both in the UK or investment hotspots across the globe such as Spain or Bulgaria, is therefore likely to rise significantly over the months ahead.

Many baby-boomers are keen to get their hands on the equity in their housing to fund the purchasing of second homes, which can provide them with two benefits in their old age. This is because it will not only act as a source of income through renting it out, but it also offers the opportunity for cheap holidays in parts of the country or world which they are attracted to.

With fewer commitments during retirement, this appears to be another attractive reason for the baby-boomer generation to become owners of second homes, or to even build up a portfolio of properties.

Assetz® is a UK and International Property Investment Specialist. Please visit our property sites shown below.

Assetz for Investors UK Assetz Hotels Assetz Homes Assetz International Assetz France Assetz Spain Assetz Cyprus Assetz Germany Assetz Portugal Assetz Ski Assetz Cape Verde Assetz USA Assetz Finance Assetz Fund Management

Accessing the news service

You can view all of the Assetz® UK, International and UK Property Investment Articles and News here.

We also provide an RSS Feed Feed of the news service, or you can view all articles. Click here to view more information on RSS readers and how they make reading online news more convenient.

eXTReMe Tracker