Over-55s have £300bn of property wealth

Mortgage Introducer

July 22, 2015

There is £69bn of housing wealth in the South East and £59bn in Greater London alone.

MGM Advantage and Stonehaven rebranded as Retirement Advantage after MGM purchased the equity release provider in May this year.

Alice Watson, product and communications manager at Retirement Advantage Equity Release, said: “Equity release take-up is growing rapidly but when you consider that the total lent in all of 2014 was £1.4bn, it’s clear that is merely the tip of the iceberg.

“We must remember that equity release won’t be right for all over 55s but the retirement landscape is changing beyond all previous recognition and property is increasingly being viewed as a viable source of retirement funding.

“With the ability to release cash from your home but stay in your property, equity release will be on the radars of ever more people in the coming years.”

Regions outside London and the South East have started to grow faster than in London, as the Halifax House Price Index found that prices in Yorkshire and Humberside grew at 5.20% in Q1 2015 and 4.20% in the South West.

Watson added: “Until recently equity release has largely been viewed as a London and South East-focused success story, due to higher than average property prices creating a large group of asset rich but cash poor retirees.

“But with house prices picking up growth across the UK and starting to outstrip London, it hints at significant opportunities for over 55s right across the country to look for new ways to access their wealth in retirement.”

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