Figures from Key Retirement show that in the first six months of 2018, £1.71bn was released through the UK’s equity release market – the equivalent of £9.5m a day.
This compares to the £1.25bn of property wealth that was released within the same period last year – 37 per cent growth. The average amount rose from £72,284 to £78,000.
Along with a rise in the amount of money released, giving some or all the money to family has grown from 23 per cent in the first half of 2017 to 28 per cent. However, paying off credit card debt or loans is also rising as a concern, increasing from 30 per cent to 32 per cent within the same time period.
Key Retirement chief product officer Dean Mirfin says: “More money was released in the first six months of 2018 than in the whole of 2015 as records continue to be broken across the market with expert independent advisers playing a vital role.”
Of the research, more 2 life chief executive officer Dave Harris comments: “The surge of sales revealed… is reflective of the levels of activity we are seeing in the market. Although it is well known that later life lending is on the rise, this research reveals a sharp escalation, mirroring more 2 life’s own findings that the total retirement lending market is on track to surpass £142 billion by 2027.”