Retirees cash in £6.9m of equity per day

Retirees cash in £6.9m of equity per day

A new report from Key Retirement has revealed that, during the first half of the year, retired homeowners released £1.25bn in equity from their properties at the rate of £6.9m per day.

According to the findings, the new record high for the equity release market means more property wealth was released in the first half of 2017 than all of 2013 when the market was worth £1bn. The data showed that almost 100 retired homeowners took out equity release plans per day in the first half of this year as plan sales soared by 44% and the total value released increased by 33%.

Total plan sales grew to 17,656 from 12,246 in the six months and total property wealth released climbed to £1.246 billion from £934.378 million.


The average pensioner took £70,625 from their home. In London and the South East of England, where more than half the property wealth was released, customers cashed in nearly £114,000 and £82,000 on average respectively.

Northern Ireland recorded the biggest increase in plan sales at 77% followed by 56% in the South East. Northern Ireland also saw the highest rise in value released at 75% followed by the South West on 51%.

Around 61% of all sales were drawdown plans, including enhanced drawdown which offers enhanced terms to people with health or lifestyle conditions, compared with 39% from lump sum single advance lifetime mortgages including enhanced products.

Dean Mirfin, technical director at Key Retirement, commented: “With nearly 100 retired homeowners a day releasing an average of over £70,000 each, the equity release market is making a major contribution to retirement standard of living.

More property wealth was generated for pensioners in the first six months of this year than all of 2013, demonstrating how rapidly the market is expanding as record low rates drive more competition to the benefit of customers.

The amount of money being released means that customers can afford to help themselves and families while also sorting out issues such as interest-only mortgage repayments and debts.”

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

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Dianne Griffen
Dianne Griffen 29 Jun 2017

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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