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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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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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

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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