Equity Release hits record £1billion quarter
UK Homeowners taking out equity release broke the £1billion barrier in Q3 with a record £1.02billion released in that time, up by nearly a quarter year on year and six per cent more than in Q2 and nearly double the amount raised in the same period three years ago.
This means they are releasing the equivalent of £11m every day from their homes, according to the latest quarterly lending figures from the Equity Release Council.
The organisation says: “This milestone comes soon after the Government backed a recommendation by its Housing, Communities and Local Government Select Committee that equity release should feature among the home finance options that will be signposted to older people by the new Single Financial Guidance Body, to help support a more rounded approach to later life financial planning.”
An unprecedented 12,016 new equity release plans were agreed from July to September 2018, equating to 6% more new customers than in Q2 2018. This is nearly double the amount seen in the same period three years ago (6,049 in Q3 2015).
David Burrowes, Chairman of the Equity Release Council said: “The equity release market is making an increasingly important contribution to the later life landscape on an individual, social and economic level. Older homeowners are discovering in growing numbers that property wealth can play a key role in funding a myriad of needs, from making home improvements and adaptations to paying for social care and giving financial help to younger family.
“Government, regulators and industry must continue to seek ways to help people take a more rounded approach to later life financial planning. No one solution suits every individual need, and there is no doubt more people can benefit from considering property wealth alongside pensions, savings and other assets when making financial decisions – both for themselves and for those around them.”