Price falls could accelerate due to pensioners' selling spree

Posted: 02 Dec 2008 12:39:29 GMT

A total of 1.7 million pensioners in Britain are currently relying on the equity locked up in their homes to help them through retirement, recent figures have suggested.

The research is important to the market as, with house prices likely to deteriorate for the coming year, it suggests many of those retirees will choose to sell their properties as soon as possible, creating a flood of new supply to the market.

Such a wave of selling could ensure property prices remain low for some time yet.

Ann Robinson, director of consumer policy at uSwitch.com, which carried out the research, said: "It's unrealistic to think that consumers will be able to make hundreds of pounds worth of savings every month, especially in the current climate, but there are steps they can take to ensure a more comfortable retirement.

"Even though times are tough, it is important that people review their financial position in order to invest what they can to secure a better future."

Homeowners hoping to sell a property will no doubt feel pressured to reduce asking prices in order to compensate for the high costs of estate agents, but selling a property online could save both buyer and seller a significant sum.

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