Older Homeowners’ Confidence In Property Market Deteriorates
Sentiment in the housing market and wider economy continued to deteriorate with older home owners.
According to new research, conducted by Just Group, almost half (46%) of people over 50-years-old are confident that the property market will decline further over the next 12 months.
Over half (54%) speculate that the wider economy will also stumble until after a definitive Brexit outcome is reached.
This sentiment is echoed in Government led projections. According to HM Treasury’s consolidation of a number of leading economic predictions, over the next two years the UK’s annual Gross Domestic Product is set to grow by less than 2%.
In 2019, the economy is set to grow by 1.3% in 2019, increasing to 1.4% by 2020. Considering 2% annual growth is needed to stimulate a booming property market, predictions suggest that property may remain bleak until after 2020.
The declining confidence in the economy by the older generation is also deterring them from embracing financial products, with as little as 22% feeling confident enough to purchase financial products. When fewer older people are making simple financial decisions like opening and managing savings accounts, it is unlikely they will consider mortgage and re-mortgage considerations for property.
Whilst many are hoping the property market can weather the break from the EU, fewer older property owners confident enough to place their properties on the market could prevent families from accessing the family housing stock owned predominantly by the older generation.
Stephen Lowe, Group Communications Director at Just Group, said:
“Many people in their fifties find they are taking care of the generations above and below them as the demands of raising children and supporting elderly relatives often coincide for this age group.
“So, it’s not surprising this group takes the gloomiest view of both their own financial situation and wider economic factors.
“On top of this they are also starting to worry what their quality of life will be in retirement.”