Research from Retirement Advantage has found that the potential wealth collectively available to over-55s in the UK through equity release rose to over £372 billion in the second quarter of 2017.
The figure amounts to a 1.4% quarterly increase nationally, and highlights the spread of potential property wealth right across the UK.
The latest findings were calculated using Retirement Advantage’s Equity Release Property Value Tracker. According to the data, the figures are driven by growth in property values across the UK, with significant rises in the East Midlands (+1%), Scotland (+0.7%) and the North of England (+0.7%). This growth comes despite recent fears about the stability of the housing market.
Alice Watson, head of marketing at Retirement Advantage Equity Release, said: “Despite some concerns about economic uncertainty slowing the housing market down, the fact is that property wealth levels across the UK remain substantial. Against the backdrop of Brexit concerns, it is encouraging to see a growth in potential property wealth available to over-55s through equity release. It is nationwide, too; far from being confined to London and the South East, the biggest growth in the last quarter has come from outside these regions.
“We know from our customers that equity release is valued for a number of reasons and as recent industry figures prove, more people are factoring property wealth into the retirement planning process. Equity release provides people with the opportunity to make the most of their retirement by using the funds released to go on holiday, clear existing debts or make home improvements – to name a few.
“When you consider the amount of potential wealth available to over-55s via equity release, the benefits of a holistic approach to retirement finances have never been so evident. Equity release won’t be right for everyone, but with many facing the prospect of their pensions not providing enough for a comfortable retirement, discussing the potential role of property and other assets with a financial adviser as a first step makes good sense.”