Two in five Yorkshire homeowners who are over 45 see property as key to their retirement income plans, according to the latest Aviva Real Retirement Report.
Aviva said that long term growth in UK house prices and homeowners’ lasting attachment to their homes mean the over-45s in Yorkshire are turning attention towards property wealth to help manage their finances and boost retirement incomes.
But with many facing pressure from existing mortgage debt, a desire to help younger generations onto the housing ladder, and concerns over making their money last in later life, the report raises the question: Is there enough house to go around?
The findings show that one in five (21 per cent) mortgaged over-45s in Yorkshire are worried about paying off their home loans, including 9 per cent who say they are very worried.
Yorkshire‘s mortgaged homeowners who are over 45 have outstanding loans of £79,297 on average, which is 16 per cent higher than the national figure of £68,189. Despite the region’s average debt being above the national average, only 12 per cent are uncertain about when they will ever become mortgage free, compared with 17 per cent across the UK. Another 3 per cent think they will never pay off their mortgage.
Despite this pressure, Aviva’s research found two thirds (66 per cent) of over-45 homeowners in Yorkshire believe that their home is worth more than their pensions, savings and investments combined.
Owner-occupied homes among Yorkshire’s over-45s are worth an average of £218,868, which is 17 per cent lower than the UK average of £264,402.
The report said that beyond the pure financial considerations, many have also developed a strong attachment to their home with the average over-45 homeowner in Yorkshire owning just three properties during their lifetime.