Wealth accumulated by homeowners via mortgage capital repayments reached a record £62.7bn in 2016, according to a white paper from the Equity Release Council.
The total represents an increase of 54 per cent from £40.7bn in 2005.
Total homeowner equity in England reached an unprecedented £2.6tn in 2016, according to the paper entitled ‘Equity release rebooted, with £1.8tn belonging to over-55 households, a figure forecast to double by 2036
The paper shows that wealth accumulated by homeowners via regular and lump sum repayments of mortgage capital has increased from £40.7bn a year in 2005 to £62.7bn in 2016: the highest figure since records began in 1999.
Equity Release Council chairman Nigel Waterson says: “A major consequence of reforms to the retirement landscape is that pensions are now fully realisable and inheritable assets, just as other financial assets and property are. This makes it possible for retirees to plan their finances by considering all their assets, including their home. For many homeowners, the logical conclusion of a more structured approach to retirement planning will be outcomes that include the release of housing wealth to meet a range of financial needs.
“Increasing product innovation, competition and flexibility has seen the equity release sector ‘rebooted’ with great potential to build on current growth. As this report sets out, there are important roles for industry, government and regulators to play in the next stage of the market’s evolution, so that the UK’s ageing population can take advantage of their considerable property assets to enjoy a more financially comfortable retirement.”