Record number of homeowners take out equity release plans
The total amount of equity released by homeowners in the last three months was up 7.2%, comparing the last two quarters, according to Responsible Equity Release.
The firm said that the equity release market has seen a record level of homeowners taking out plans this year, and the past three months has seen the number of completed plans increase by 12.8%, compared to the quarter ending 30th April.
Looking at month-on-month figures, the average amount released by individual homeowners was just above £76,000 in July, a similar level to June.
Scotland saw a 66.9% rise in the total amount of equity released in July vs June. In the West Midlands, individual homeowners released an average of £61,513 from their properties last month, up 55.6% on June.
Steve Wilkie, managing director of Responsible Equity Release, said: “The equity release market remains in good health and is still on course to be the strongest year ever for the sector.
“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.”