Equity release up 22 per cent in Q2 as inflation quashes savings
Homeowners over 55 have collectively released £225 million worth of equity from their homes in the second quarter of the year, accordingly to latest figures from the Equity Release Council (ERC).
April – June 2012 saw an increase of 22 per cent increase against the same period in 2011; the highest quarterly figure since the recession first hit at the end of 2009.
The ERC believe inflation is one of the main contributing factors to the rise, causing savings to slump. According to recent research by Aviva, the average savings for 55 to 64 years is now just £9400; two years prior the averages stood nearly two thousand pounds healthier at £11,200.
Dr. Ros Altmann is the Director General of Saga, the one stop shop for over 50s:
“The equity release figures tell us that the over-55s need money and they are desperate to find somewhere to get it from. If they own a house that is one of the ways they can get money.
“It may tell us that a lot of them have been disappointed with the pensions they have saved for which have not worked out as they had hoped.”
Content correct at time of publication