Brits ''relying on property value''

Many Brits are now relying on their homes to see them through old age and an estimated half of the country''s wealth is tied up in such properties, according to new research.

Datamonitor, which collates statistics, says that as the years go on more Brits are likely to have their wealth invested in property and this could lead to increasing numbers of homeowner loans being arranged.

Rather than ten years ago when people spread out investments across pensions, life insurance schemes and shares, now people are turning solely to bricks and mortar.

Ali Crossley, from Prudential, said: "House prices have risen significantly over the last 20 years and this is one of the reasons why we have seen such a shift in wealth components."

This is a cause of concern to some though as rising UK interest rates could mean disaster for many Brits who have been borrowing against the high value of their home and getting into debt which they cannot pay off.


© Adfero Ltd