The equity release market hit an all-time high after 24% growth saw total property wealth of £1.71 billion released.
Sales of equity release plans climbed to 23,747 in 2015, 11% above the previous year as the launch of pension freedoms underlined the growth in retirement income choices.
The average property value of homeowners using equity release plans rose around 6% to £274,770 from £259,882.
However the average amount released increased by 11% from £64,750 in 2014 to around £72,000 last year. In London average customers released £128,000 and in the South East they benefited by releasing over £84,000 of property wealth.
Dean Mirfin, technical director at Key Retirement, said:
“Property wealth is making a massive contribution to retirement income and planning with pensioners releasing a record £4.7 million a day from their homes.
“The average equity release customer is benefiting to the tune of over £72,000 from the wealth built up in their homes easily outstripping the average amounts being released from pension funds.
“Sales of equity release plans are rising strongly as well underlining how pension freedoms have widened the choice of retirement income solutions with people now considering their home as part of their retirement portfolio.
“Debt in retirement remains a major issue with large numbers of customers using money to clear mortgages as well as credit card debt and loans. That highlights a real need for lenders - including equity release providers - to develop solutions to help. The interest only mortgage problem steps up a considerable gear in 2016 and the market needs further innovation to meet this increased demand from those who urgently need solutions to enable them to remain in their homes.”
