The figures show that the collective property wealth of over 55s in England, Scotland and Wales could yield as much as £335bn via equity release. Regionally, the South East tops the list with £69bn of equity release wealth owned by over 55s, followed by Greater London at £59bn.
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.”
The Equity Release Property Value Tracker 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 5.20% in Q1 2015, followed by 4.20% in the South West. The Retirement Advantage Equity Release Property Value Tracker shows that potential wealth accessible via equity release totals £20bn and £35bn in these regions respectively – figures likely to rise over the next few months.
Alice Watson added: “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.”
