People aged over 55 living in England, Scotland and Wales sit on property wealth of around £335 billion that can be accessed through equity release, new research from Retirement Advantage has revealed.
Regionally, the largest amount tied in property is in the South East with £69 billion of equity release wealth owned by over 55s, followed by Greater London with £59 billion.
The Equity Release Property Value Tracker of Retirement Advantage has been calculated using public data on home ownership by over 55s, and the latest average house prices. In recent months, data on average house prices across the UK have shown that regions outside London are finally seeing faster rates of growth than the capital itself. According to the Halifax House Price Index, property prices in Yorkshire and Humberside grew at 5.2 per cent in the first quarter of 2015, followed by 4.2 per cent in the South West. The Retirement Advantage Equity Release Property Value Tracker shows that potential wealth accessible via equity release totals £20 billion and £35 billion in these regions respectively – figures likely to rise over the next few months.
Alice Watson, product and communications manager at Retirement Advantage Equity Release, commented:
“Equity release take-up is growing rapidly but when you consider that the total lent in all of 2014 was £1.4bn, it’s clear that is merely the tip of the iceberg. We must remember that equity release won’t be right for all over 55s but the retirement landscape is changing beyond all previous recognition and property is increasingly being viewed as a viable source of retirement funding. With the ability to release cash from your home but stay in your property, equity release will be on the radars of ever more people in the coming years.”
“Until recently equity release has largely been viewed as a London and South East-focused success story, due to higher than average property prices creating a large group of asset rich but cash poor retirees. But with house prices picking up growth across the UK and starting to outstrip London, it hints at significant opportunities for over 55s right across the country to look for new ways to access their wealth in retirement.”
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