Recent research has shown a significant growth in the number of people releasing equity from their homes.
According to Responsible Equity Release, the figure for the first six months of 2017 is up by 72% compared to the corresponding period last year.
The number of equity release plans taken out in May also reached an all-time high, with UK homeowners releasing an average of over £63,000.
On a regional basis, equity being released in the South West has seen the sharpest rise, with homeowners in this region taking out 357% more equity during the first half of 2017 than in the same period during 2016. Just behind this was the South East, where 295% more equity was released.
London, on the other hand, saw a fall in the amount of equity being released. Potentially due a price slowdown in the area, average loan sizes in May were down to £100,000, significantly lower than April’s average of £165,000.
Commenting on the growth in equity release was Steve Wilkie. The managing director at Responsible Equity Release highlighted the strength of the market despite political and economic uncertainty.
“The equity release market has had a healthy start to the year, with more people than ever taking out plans and no sign of a drop-off in enquiries due to Brexit and the General Election.
“The flexibility and innovation of new products has opened up the equity release market to a new audience, who are starting to appreciate that the money tied up in their properties is available to them and can be accessed when they need it.
“It’s only too evident in this low-interest rate environment, how tough retirees are finding the cost of day-to-day living. Equity release is proving an important financial product for thousands of people who are approaching retirement or have retired; and are now relying on their savings and investments but are just not getting the income they had hoped for.
“People are now starting to appreciate that as well as being the most valuable asset they own, their properties can also be seen as savings accounts which they have been paying into for years. Equity release now offers the facility and flexibility to make regular withdrawals from that savings account.”
