Boost for house listings and equity release
13th March 2018

Two main drivers for the retrofit sector gave reason for optimism this week with the news that estate agents house listings rose by 20% last month and the number of homeowners taking out equity release in 2018 has almost doubled on the same period last year – and the total sum involved has grown even more.

The increase in property listings also follows an even stronger January which saw 40% more homes going up for sale – more than the expected seasonal lift – although the February total was only marginally up on February 2017, according to the monthly survey by online estate agent housesimple.com.

Meanwhile, figures published today by Responsible Equity Release show that the number of people choosing to release equity so far this year is up 93% on the same period in 2017, while the total sum released is up by 132%.

The average equity release plan handled by Responsible Equity Release last month was £82,666 down from £87,035 in January. While the total amount of equity released by homeowners so far in 2018 is more than double (132%) the total amount released during the same period in 2017. And the total number of people taking out equity release plans in the first two months of 2018 is up 93% on the corresponding period last year.

The provider says the practice is becoming more established as a mainstream financial product, as more people are seeing its potential.

Its managing director Steve Wilkie said: “The equity release market has had a strong but steady start to 2018, and the range of people with specific requirements that equity release can now benefit has seen the product move from niche to mainstream.

“We’re still seeing plenty of enquiries from people who took out interest only mortgages on their homes which are coming to an end and are struggling to remortgage. But we talk to just as many retirees who are keen to have an equity release drawdown facility, so that they don’t have to take money out of their pensions while stock market volatility is so high. The home has become a viable income source, filling the retirement income gap left by poor performing savings accounts.”