£382bn worth of equity available to older homeowners
There is now £382bn worth of equity available within older homeowner’s properties, due to rises in house prices across the country, research by Canada Life has found.
The figures, based on public data on UK property homeownership and the latest Nationwide Building Society house price figures, have revealed that the amount of equity available to homeowners aged over-55 is up £2.5bn compared to July 2018.
Alice Watson (pictured), head of marketing and communications at Canada Life Home Finance, said: “At the beginning of this year, we reported that nearly 1 in 5 financial advisers believed house prices would rise by up to 5% in 2019 – despite a less positive outlook from other commentators – and this has been proved right across many areas in the UK.
“While this isn’t the case for every region, the overall rise in house prices is great news for homeowners, whose largest asset is usually their property.
“Customer demand for equity release has increased significantly across the UK over the last year, and we expect this trend to continue over the next twelve months, especially as the recent rise in house prices means that more equity is now available to over-55s.
“With more equity now available, we anticipate demand for equity release to continue rising. Homeowners are continuing to look at property wealth holistically, and are increasingly viewing it as something that can help them enjoy their retirement.”
The equity release market has steadily been growing since 2011, with a 23% uptick from 2017 to 2018 reported by the Equity Release Council in their 2019 Spring Statement.