Reliance on housing equity is good news for the future of equity release
According to a recent survey by More 2 Life, more than a third of over 45s are relying on the equity of their property to help fund their retirement.
The research, which saw over 1000 people over the age of 45 questioned, is music to the equity release market’s ears.
24 per cent of over 65s are considering releasing equity from their home to help finance retirement. However this figure doubles when taking into account the responses from the 45 – 54 age bracket; 48 per cent prepared to use their property as retirement collateral.
Jon King is the Managing Director of More 2 Life:
“Rising longevity means people will be retired for longer and will need income to last longer if they want a comfortable retirement.
“Retirement savers are literally sitting on wealth with average house prices at £160,000 and that could be used to help supplement retirement income. It makes sense to include property equity in retirement income planning.”¹
2011 has been a good year for the equity release market; Q3 saw a 12 per cent year-on-year increase and, according to Safe Home Income Plans (SHIP), the industry is now at its highest rate of sales and lending figures in nearly two years.
This augmented activity has increased interest in the market; according to a Mortgage Solutions poll, 55 per cent of brokers are considering getting in the game next year.
Content correct at time of publication