The over-55’s are cashing in on their homes at a rate of £9.5m a day reveals new research published at the weekend.
Data from equity release adviser Key Retirement reveals that:
- around £9.5million of property wealth was released every day in the first half of the year;
- 29% more people are taking equity release plans than last year;
- customers are receiving an average of nearly £78,000 per plan;
- over a quarter of all equity release sales this year were in the South East with retired London homeowners releasing an average £133,000 of property wealth each (the highest in the country) followed by the South East on nearly £90,000 and the South West on £77,000.
What was the cash used for?
The study highlighted that the money was used for a variety of reasons:
- to fund home and garden improvements;
- to pay for holidays;
- to clear mortgage, credit cards or loan debt;
- 28% used some or all of the money for gifts for families - a 5% increase compared to the first six months of 2017.
A spokesman from Key Retirement, said: “More money was released in the first six months of 2018 than in the whole of 2015 as records continue to be broken across the market with expert independent advisers playing a vital role.
“Property wealth is not just helping to transform an individual’s retirement planning but is also helping their families with their financial needs. The growth in gifting underlines how much can be achieved when the average amounts being released are as much as £78,000. The Bank of Mum and Dad, or Gran and Grandad are changing lives, and not just their own.”
This time last year we reported how £6.9m worth of equity release was cashed in every day in first half of 2017 – a difference of around £2.6m PER DAY less to what it is now.