£375bn available through equity release from UK property

£375bn available through equity release from UK property

The third quarter of 2017 saw a £2bn increase in the potential amount of wealth available to over-55s in the UK through equity release, according to Retirement Advantage research.

The increase to £375bn represents a 2.7% increase year-on-year, driven by strong house price growth over the last year in the East Midlands (+5.1%), South West (+4.8%) and the West Midlands (+4.6%). However, fears around house price stability may be stoked by the first decrease in London house prices in nearly a decade (-0.6%).


Alice Watson, head of marketing at Retirement Advantage Equity Release, said: “While the slight decline in London house prices may raise some anxieties around the stability of the housing market, particularly at a time of uncertainty around Brexit negotiations, it is crucial to remember that it comes after a long period of significant growth in house prices. As a result, there is substantial wealth available in equity that will likely remain robust, even if prices start to dip or we see a rise in interest rates in the coming months. These figures show that there is still strong growth in house prices in most regions across the country, not just the South East.

“The sheer amount of potential wealth available to over-55s through equity release highlights the positives of a holistic approach to retirement finances. Equity release won’t be right for everyone, but consulting a financial adviser will help over-55s to assess whether property wealth can help to support their retirement income. Many are in a position where their pensions don’t provide enough for a comfortable retirement. Equity release can provide them with the opportunity to use the wealth built up in their property to make home improvements, go on holiday or clear existing debts, while still being able to protect a proportion of the value of their home as inheritance.”

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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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

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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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

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