Data shows equity release rising in popularity
22 October 2012
New data released by the Equity Release Council has shown how the popularity of such products is continuing to rise among older homeowners in the UK.
Research conducted by the regulatory body showed total advances of £248.9 million were recorded during the third quarter of the year, which is up 11 per cent on the data for the previous three months.
Year on year, there has been a rise of more than 20 per cent, indicating homeowners aged between 55 and 95 are increasingly looking for ways to unlock money from the value of their house to ensure they have a financially comfortable retirement.
Market growth
It was noted by the Equity Release Council that this is also the largest amount of equity released since the last quarter of 2008 - when the figure recorded was £274.1 million - and this indicates that "as life returns to the residential mortgage market, the equity release market is following suit".
Director-general of the body Andrea Rozario stated the third quarter of the year is traditionally the strongest three-month period of the calendar and the release of the new data is a firm sign that the market is back on track for "sustained growth".
She said: "If we see more than £200 million worth of equity released in Q4 - something that we are on track to do - then this year we will out-perform both 2011 and 2010."
Ms Rozario added that this indicates there is a renewed consumer interest in these products, which she said is excellent news for the equity release market in the UK.
Big year
It was noted that 2012 has already been a big year for the Equity Release Council, due to the fact that it has rebranded and expanded its membership in the last few months.
Earlier in the month, the body announced that it had appointed several senior politicians to its newly formed Advisory Board, including Lord David Lipsey, Lord Michael German, Lord Richard Best, Eric Ollerenshaw MP and Heather Wheeler MP.
Homeowners who want to learn more about equity release plans and their options for their retirement can get in touch with the experts at Key Retirement Solutions for more information.