Equity release market soars 72% in 2017

The number of people releasing equity from their homes is up 72% so far this year, compared to the same period last year, as homeowners need to "cover pension shortfalls, prop up savings accounts hit by low interest rates and pay off mortgages", according to Responsible Equity Release research.

Related topics:  Retirement
Rozi Jones
29th June 2017
pension, retirement, house, hands
"Equity release is proving an important financial product for thousands of people who are approaching retirement or have retired; and are now relying on their savings and investments"

The total amount of money released by homeowners is up almost 80% for 2017 compared to Jan 2016 through to May 2016.

 May 2017 also saw a record number of equity release plans taken out by UK homeowners, up almost 14% on April 2017, with homeowners releasing more than £63,000 on average.
 
Regional figures reveal that homeowners in the South West have taken more than four times (357%) more equity out of their properties in 2017 to date, compared to last year. While, almost three times (295%) more equity was released in the South East since the start of the year compared to the same period in 2016.

London homeowners released significantly less equity from their homes in May compared to April, possibly as a result of property price growth slowing in the capital. Average loan sizes were below £100,000 in May compared to more than £165,000 in April.

Steve Wilkie, managing director, Responsible Equity Release, commented: “The equity release market has had a healthy start to the year, with more people than ever taking out plans, and no sign of a drop off in enquiries due to Brexit and the General Election.
 
"The flexibility and innovation of new products has opened up the equity release market to a new audience, who are starting to appreciate that the money tied up in their properties is available to them and can be accessed when they need it.
 
“It’s only too evident in this low interest rate environment, how tough retirees are finding the cost of day-to-day living. Equity release is proving an important financial product for thousands of people who are approaching retirement or have retired; and are now relying on their savings and investments, but are just not getting the income they had hoped for.
 
“People are now starting to appreciate that as well as being the most valuable asset they own, their properties can also be seen as savings accounts which they have been paying into for years. Equity release now offers the facility and flexibility to make regular withdrawals from that savings account.”

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