Fewer people are set to use equity release products, due to the property downturn.
The common trend of homeowners using their property as an investment tool to fund their retirements has become less prevalent due to the housing sector's slowdown, it has been claimed.
Pensions provider MetLife released research today, showing that one third of homeowners feel "less confident" about using property in this way, either through equity release or through downsizing to a smaller home and living off the difference.
The credit crunch and the attendant housing downturn, which has diminished overall equity held in UK properties, has been blamed for the trend.
This change in consumer sentiment could have a marked effect, given the fact that using houses for investment purposes has been previously commonplace. Indeed, recent figures from Business Development Research Consultants show that around 2.96 million households are "dependent" on equity built up in their properties for their retirement income, the Times reports.
Ed Gardner, chief executive officer at MetLife UK, commented: "The party is over for the moment at least in the housing market, with most commentators agreeing that prices will fall this year and possibly for another two years.
"That ought to act as a wake-up call for people who have assumed that their property is their pension. Of course, equity tied up in your home can form part of retirement planning but, as recent events have shown, this does not provide a guaranteed pension. Saving into a pension is tax-efficient and should be a vital part of financial planning."
