The pandemic’s created a lot of economic disruption. But house prices have stayed relatively buoyant. In fact, median house price values have increased by 24% since 2016. That’s had a big impact on the average homeowner’s retirement equity release possibilities.
For example, in March 2021, our customers across England and Wales could release on average £72,988 of equity from their homes. That’s just over £10,000 more than the size of the average pension pot. And because house prices have grown so much, it’s £5,000 more than they could have borrowed in 2020, and £14,000 more than they could have done in 2016.
That house price buoyancy is already having an impact on pre-retired homeowners aged over 50. 29% of them are either thinking seriously about or actively applying for a pension-boosting equity release.
16% of them will definitely use their property wealth to boost their finances, by taking out a lifetime mortgage or downsizing. Another 13% will draw on it if the value of their home has gone up enough.