Research by Canada Life has found that there is now £383 billion worth of equity available within older homeowners’ properties, due to house price rises across the UK.
The figures, based on the latest Nationwide Building Society house price data, reveal that the amount of equity available to homeowners aged over 55 now stands at £383 billion, an increase of over £1.5 billion compared to Q2 2019.
The combination of a growing ageing population – with an estimated 20.5 million people aged 55 and over in the UK, the age at which you are eligible for equity release – and marginal rises in house prices have helped grow the overall amount of available property equity. And by H1 2019, the average equity release rate fell below 5% for the first time, enabling even more homeowners to unlock the cash stored in their home.
Alice Watson, Head of Marketing and Communications at Canada Life Home Finance, said:
“As the average UK house price has increased, there’s now more equity available to UK homeowners aged 55 and over. This lays a strong foundation to support increased demand for equity release, and with the first half of this year seeing an increase in the total number of customers, there are positive signs for the industry.
“Earlier this year, we reported that nearly 1 in 5 financial advisers believed house prices would rise by up to 5% in 2019 – and despite some naysayers, their positive prediction has been vindicated. And with considerable equity available to homeowners aged 55 and over, it’s important that the industry does all it can to encourage more people to look at their wealth holistically and realise the role that their property wealth can play in their financial planning.”