Equity release funds £1 in every £90 spent in by UK retirees

Around 26% of equity release plans (£1.3bn) are used to fund single, big purchases such as home improvements, a new car, or furniture, while 17% of the money released is put towards medical expenses, the report found. Other popular uses include overseas travel and financial planning (£480m). 

Britons using equity release are expected to withdraw an average of around £170,000 from their homes within the next five years to meet rising living costs, according to the Cebr’s forecasts. The total amount of equity released from property is predicted to double by 2030 to more than £12 billion, as the average amount of equity released increases. 

Around 23,400 retirees have released around £1.53 billion in the first three months of 2022 alone, latest figures from the Equity Release Council show, a rise of 21% on the same period last year. 

Craig Brown, CEO of Legal & General Home Finance, said: “This shift reflects the boom in property values, which have made our homes such an important asset, but it also demonstrates how far the equity release market has come through the introduction of product innovations and how it has become a more suitable solution for a wider range of people. 

“The impact of the equity release market is more significant than just the spending power it gives to customers, it also makes a positive contribution to the UK economy.”

Author: wpadmin

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