Over-55s in the UK saw the potential wealth that is available through equity release, rise by 1.4% in Q2 2017 – reaching £372bn, according to new research.
The firm that carried out the research, Retirement Advantage, found that the figures were driven by the nationwide rise in house prices, with the strongest increases in property value seen in the East Midlands (1%), Scotland (0.7%) and the North of England (0.7%).
Retirement Advantage used Government figures on homeownership and the Nationwide house price index to produce its report.
Using its own loan-to-value (LTV) figures for a homeowner aged 55, Retirement Advantage calculated the maximum loan amounts available through equity release.
“Despite some concerns about economic uncertainty slowing the housing market down, the fact is that property wealth levels across the UK remain substantial,” said Alice Watson, head of marketing at Retirement Advantage Equity Release.
“Against the backdrop of Brexit concerns, it is encouraging to see a growth in potential property wealth available to over-55s through equity release.”
The report follows news from the Equity Release Council (ERC) last week, that the value of equity release lending in Q2 2017 rose on a yearly basis by 27% to 701m – the highest figure ever documented since the ERC records began in 2002.
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