Equity release still booming
December 2017

The number of homeowners taking out an equity release plan reached record levels for the second consecutive month according to the new figures out this week, with one provider blaming a lack of good news for pensioners in the autumn budget.

The report, from Responsible Equity Release, also shows the the average amount per homeowner reached an all-time high of £85,946 up from £70,851 in October.

On a quarterly basis, the number of homeowners using equity release was over 20% up on June-August and in the same period, the total amount of money taken out was up 25.3%.

Steve Wilkie, managing director of Responsible Equity Release, said: “There was nothing for pensioners in the Autumn Budget as the Chancellor focused his attention on winning over the younger voters. There was talk of a stamp duty freeze further up the property chain to help and encourage pensioners to downsize. Instead, Philip Hammond chose to cut stamp duty for first-time buyers rather than help the older generation. 

“Retirees aren’t so much the older generation as the forgotten generation. They’ve been left to fend for themselves when it comes to their finances, having to swallow a decade of stagnant savings growth. With rising living costs, many are left with very little income to enjoy their latter years.”