Equity release still growing
21st August 2018

The practice of equity release on domestic property is showing no signs of abating, with the latest figures from one provider showing the number of such plans grew by over 12% in the three months to July compared with the last quarter
Responsible Equity Release says the sector is performing strongly despite a subdued residential housing market. It adds: “Also, with banks showing a reluctance to pass on the latest interest rate rise, more retirees are turning to equity release to boost flagging savings.”

Regionally, Scotland saw a 66.9% rise in the total amount of equity released in July over June. While in the West Midlands, individual homeowners released an average of £61,513 from their properties last month, up 55.6% on June. The average amount released by individual homeowners around the UK was just above £76,000 in July, a similar level to June.

Steve Wilkie, managing director, Responsible Equity Release, said: “It’s evident in the way people see equity release now, that the sector has grown up. Equity release has matured as a product and the popularity of drawdown is an illustration of just how far the industry has come. Homeowners are seeing equity release as a valuable financial solution, particularly in retirement; an income tap to be turned on when needed, and not funds to spend frivolously.”