Recent research indicates that the high numbers of homeowners releasing equity could be due to an end of year surge.
According to Responsible Equity Release, November saw the average amount of cash unlocked through property hit a record high of £83,946.
Up by 1.2%, the number of homeowners who took out equity release plans last month also reached new heights, overtaking the levels seen in October. During Quarter 3 of 2017, the number of equity release plans taken out was 20.9% higher than Q2, with total equity unlocked up by 25.3% over the same period.
On a regional level, the South East saw the amount of equity released hit £129,004 on average, whilst London saw £170,000 worth of cash unlocked through property – 41.8% up on the previous month.
Commenting on the figures was Stevie Wilkie. The Managing Director of Responsible Equity Release highlighted the lack of motivation when it came to downsizing, as well as the need for the equity release industry to adapt.
“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.
“This is why thousands of retirees are using their homes to provide a much-needed income boost. The house has become an asset that can work during their lifetime, rather than being simply being passed down to future generations. And the equity release industry has listened and evolved to provide a retirement solution that fits.”
