Around 27pc of those aged over 50 said they planned to use money tied up in their home to provide themselves with a retirement income, such as through downsizing or releasing equity, according to life insurer LV=. The average homeowner in this age group believes around £27,000 has been wiped off the value of their property during the downturn.
But despite this only 2pc of people said house price falls had put them off using their home to fund their retirement. The research also found that previous house price booms have left many people reliant on the wealth tied up in their property, with 12pc admitting they had saved less into a pension because of the rising value of their home.
But despite this only 2pc of people said house price falls had put them off using their home to fund their retirement. The research also found that previous house price booms have left many people reliant on the wealth tied up in their property, with 12pc admitting they had saved less into a pension because of the rising value of their home.
A further 13pc claimed they could not afford to buy their own property and invest in a traditional pension because house prices were so high. A third of homeowners think it will take between three to five years for house prices to return to their former values.
Around 17pc of people hope to recoup some of their lost equity by carrying out home improvements, while 21pc will save extra and 29pc will wait for house prices to recover.
Vanessa Owen, head of equity release at LV=, said: "In the decade leading up to the credit crunch, more and more homeowners saw their property as a potential cash cow to aid retirement. "But in a matter of months millions of pre-retirees have seen both their property and pension fund values battered. Despite this, their confidence in the long-term value of bricks and mortar remains."
It is perhaps encouraging therefore to hear the latest news from the Nationwide. The cost of a home increased by 0.5pc during the month, pushing average property prices up to £162,764 - a level last seen in August 2008.
Martin Gahbauer, Nationwide's chief economist, said: "The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5pc, leaving the average price of a typical property 2.7pc higher than a year earlier."
But there are signs that house prices are rising at a more moderate pace than in the spring and summer, with the 0.5pc rise recorded for both October and November, the smallest since prices stopped falling in April.
The three month on three month growth rate, which is generally considered to be a smoother indicator of the underlying trend, also moderated during November to 2.8pc, down from 3.5pc in October and 3.8pc in September.
Today's figures come the day after the Bank of England reported that the number of loans approved for house purchase had increased for the 11th consecutive month in October, rising to 57,345, their highest level since March 2008. The housing market has recovered quicker than expected during 2009 as a shortage of properties on the market has pushed up prices.
However, many economists are predicting a return to price falls during 2010 as more homes are put up for sale.
Nationwide said the housing market remained "crucially dependent" on labour market conditions. It added that while unemployment had increased noticeably, the rise had not been as rapid or as pronounced as previously feared. Mr Gahbauer said: "Despite continued uncertainties about the future, the better than expected performance of the labour market has probably contributed to the surprise rebound in house prices this year.
"Together with the fact that mortgage rates have fallen sharply as a result of base rate cuts, this has meant that far fewer borrowers have fallen into arrears than would normally be the case in such a deep recession. As such, the downward pressure on house prices from distressed sales has so far been significantly lower than expected."
