Homeowners are withdrawing £11 million in property wealth every day in the UK to finance later life.
Figures from the Equity Release Council reveal that the total amount of equity accessed in the third quarter of 2018 reached a record £1.02 billion, up £195 million since the same period last year.
Unlocking property wealth in record numbers
According to the data, homeowners over the age of 55 are unlocking their equity wealth in record numbers because the market and product range are growing to meet customer demand.
Meanwhile, the council has welcomed news that the Government is backing moves to signpost home finance options for older people. The recommendation from the Housing, Communities and Local Government Select Committee suggests older people are given greater guidance on later life finance through the new Single Financial Guidance Body.
Its latest quarterly report says 12,016 new equity release plans were agreed from July to September, an increase of 6 percent in customer numbers on the year's second quarter.
Returning customers drew down £99 million in the third quarter, the biggest quarterly amount on record. However, the average drawdown per customer fell slightly, to £11,443 from £11,543.
Important contribution to later life
David Burrowes, chairman of the Equity Release Council, said: "The equity release market is making an increasingly important contribution to the later life landscape on an individual, social and economic level.
"Older homeowners are discovering in growing numbers that property wealth can play a key role in funding a myriad of needs, from making home improvements and adaptations to paying for social care and giving financial help to younger family.
"Government, regulators and industry must continue to seek ways to help people take a more rounded approach to later life financial planning. No one solution suits every individual need, and there is no doubt more people can benefit from considering property wealth alongside pensions, savings and other assets when making financial decisions - both for themselves and for those around them.
"As the range of later life products continues to grow, it is vital we encourage customers to consider all available options, and ensure they can access appropriate guidance and specialist advice to weigh up the benefits, costs, flexibilities and protections to best meet their current and future needs."
Homeward Legal can help
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