THE POTENTIAL OF HOME EQUITY CONVERSION SCHEME AS A HOUSING OPTION FOR LOW INCOME AGED HOME OWNERS

Abstract

The introduction of Home Equity Conversion Scheme in the public and private sectors has broadened the housing options for older people. The schemes provide a method to convert the equity in their home into some other usable form. The home owner still has the right to occupy the house. Due to this characteristic, the scheme tends has potential to provide economic resources to aged home owners who are asset rich, but income poor. The aim of this study is to examine the potential of the scheme as housing option for low income aged home owners. The perceptions of aged home owners about this scheme are examined and related with their marital status, age, income and living arrangements. The study concludes that home ownership is placed in the highest value among the elderly, particularly those who live in a family household. As a result, the schemes are not popular amongst the older population. However, due to the increasing incidence of older lone person households, the potential of the scheme as a housing option for those groups of population may increase in the future