Housing wealth available to over-55s tops £370bn in Q2

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The potential wealth available to over-55s in the UK through equity release in Q2 rose 1.4 per cent to around £372bn, according to Retirement Advantage research. 

The firm’s latest equity release property value tracker found the figures are driven by house price rises across the country. 

Retirement Advantage says the regions showing the strongest increases in property value were the East Midlands (1 per cent), Scotland (0.7 per cent) and the North of England (0.7 per cent).  

Retirement Advantage Equity Release head of marketing Alice Watson says: “Despite some concerns about economic uncertainty slowing the housing market down, the fact is that property wealth levels across the UK remain substantial. 

“Against the backdrop of Brexit concerns, it is encouraging to see a growth in potential property wealth available to over-55s through equity release.”

Retirement Advantage produces its report by using Government figures on homeownership combined with the Nationwide Building Society house price index figures.

The maximum loan amounts available through equity release are calculated using Retirement Advantage’s LTVs for a homeowner aged 55 with no additional product features.

Last week the Equity Release Council reported that the value of equity release lending in Q2 rose 27 per cent year-on-year to £701m.

This figure is the highest for any quarter since the ERC started keeping figures in 2002.