Falling property prices ‘affecting elderly’

Many elderly people are seeing large amounts of money being wiped off the value of their houses, it has been noted.

This could have an impact on older homeowners who rely on the equity in their properties for a source of income, stated Michelle Mitchell, charity director at Help the Aged and Age Concern.

It comes following figures from propertyfinder.com, which revealed that the average pensioner has seen a drop of approximately £52,000 on their home over the past 12 months.

Ms Mitchell stated that these circumstances could create “significant risks” for the elderly, who may find that they have to rely on local authorities to pay for care rather releasing the equity in their house through products such as remortgages.

She added: “Falling property prices could limit the options for older people planning to sell their home and use the proceeds to pay for care.”

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