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Equity release market growth fastest in North East: ERS

Equity Release Supermarket has published data collected on market growth in 2018, revealing what is said to be an association between equity release completions and regional house prices.

The data highlights the number of equity release plan sales in all regions across the UK experienced double-digit growth.

In the North East equity release sales grew 117 per cent year-on-year, followed by the East Midlands at 92 per cent.

Furthermore, growth by sales value saw the East Midlands record the highest at 140 per cent year-on-year, which the firm believes to be due to the 4 per cent annual house price rise in this region.

In contrast, London saw the smallest rise in plan sales at 19 per cent, which is believed to be due to house prices falling 0.8 per cent year-on-year, according to Equity Release Market.

However, despite this London was found to be the most appealing region for lenders and brokers with the capital at 130 per cent above the national average for lending.

The South East recorded the highest percentage of lending at 23.9 per cent with London following at 17.7 per cent.

Equity Release Supermarket founder and chief executive Mark Gregory says: “We have seen exceptional annual growth in terms of both the number of plans sold and the value of these plans.

“However, growth in the equity market is in stark contrast to the broader housing market, which continues to be weighed down by ongoing economic uncertainty.

“It will be interesting to see if these trends continue in 2019 as it could impact how equity release providers, particularly those with regional lending policies or those with ‘on the ground’ sales forces, manage their businesses in the year ahead.”

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