Every day there seem to be doom-laden reports from every industry imaginable saying that prices are shooting up. In fact, I recently saw it better described as a ‘cost of existing crisis’. Food, petrol, energy and everything in between is shooting up in price and show no real sign of levelling off. The price at the pump seems to be increasing hourly and the government has been slow to step in.
Everybody in the UK – as well as throughout the world – is being affected by this crisis and after two years of unprecedented times with the coronavirus, this feels like a real kick in the teeth.
But there are options. Regardless of all the drama and pain so many of us have been through over the last few years, some may say that one asset appears to be virtually bulletproof: property.
Hot or cold?
By May of 2022, the housing market had hit its 11th straight month of growth and the average property price reached a record £289,099. Now, many experts in the field have been warning of an imminent ‘cooling’ of this red hot market.
But how many times have we heard this before? The stamp duty freeze which Rishi and co. announced to support the industry was expected to hamper property prices once it was phased out last year. In truth, property prices seem to be incredibly robust and I for one would take anything a house price doomsayer says with a heavy pinch of salt.
So, for those of us lucky enough to own our own home, property could, for some, come to the rescue in these uncertain times. Of course, this can be realised by selling up and downsizing — and the market growth proves many are going down this route – but after years in isolation how many will want the stress and strain of uprooting? Furthermore, will the pandemic lockdowns have proved to people that the home they have built and cared for over many years is the place they want to stay?
Wiggle room
For the later life lending industry, and especially for equity release, the booming property market coupled with the crunch on everyone’s finances is crystallising the allure of the lifetime mortgage for many more customers. Here is a product that can help alleviate the immediate pain of this cost-of-living crisis, all while never demanding immediate repayment and ensuring that people can stay in the home they love.
But, as ever a full understanding of how equity release works is essential for the customer.
It seems, unfortunately, that this crisis will get worse before it gets better. So, options like equity release should be carefully looked at by those who need some financial wiggle room.
Today’s market is awash with choice and flexibility, and I am proud that our industry can help thousands across the country who may need it now more than ever.
