Equity release market estimated at £361bn

Equity release market estimated at £361bn

The latest research from Retirement Advantage has found that over 55s have access to an equity release market estimated at £361bn.

The findings come as the Equity Release Council reports that equity release lending reached a new high of £1.61bn in 2015, surpassing the former £1.21bn peak achieved in 2007 by 33%.

Alice Watson, product and communications manager at Retirement Advantage Equity Release, said: “The latest lending figures from the ERC confirm that equity release is increasingly becoming an integral part of retirement planning in the UK. The market is growing rapidly, but clearly still has a way to go, with less than one per cent of housing wealth available to over 55s being accessed through equity release.

As an industry, we have plenty of work to do to ensure that retirees understand all the options available to them. For many, their home will be their most valuable asset, and we should encourage them to understand that they can access the wealth stored in their homes without having to sell up.”

The research also shows that while most housing wealth per home is still available in the South of England, regions outside the traditional equity release heartland are catching up fast. Property values grew faster in the North of England and East Anglia than the South East over the last year.  
    
The South East tops the regional list for potential equity release value available to over 55s in Q4 2015, with a total of £76bn, followed by Greater London, where an estimated £57bn is available. Greater London saw the fastest annual growth in property value, up 16.8%, while East Anglia and the North, up 16.7% and 14.5% respectively, both saw more substantial increases than the South East, up 9.9%. The greatest quarterly increase in house price growth was reported in the North, at 6.6%, compared to 3.5% in London. 


Alice Watson commented: “With housing wealth among over 55s continuing to rise rapidly in the UK, we expect to see retirees taking an increasingly holistic approach to retirement. The regional distribution of this house price growth demonstrates that it’s not just in London and the South East where property can help to secure a comfortable retirement. House price growth is accelerating throughout the UK, with the North of England and East Anglia in particular reporting substantial increases in property wealth.

As the ERC looks to celebrate the 25th anniversary of its first industry standards, we welcome the Council’s efforts to build on the policy recommendations it made in October last year. Protecting borrowers and upholding best practice across the equity release sector is integral to ensuring its continued growth.”

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Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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