Equity release ‘helps 13 people a week onto housing ladder’

Published on

Retirement Advantage estimate that in the first half of 2017, 13 first-time buyers were helped onto the housing ladder every week thanks to equity release.

According to the firm, the figure highlights the scale of support first time buyers receive from relatives, who are tapping into their property wealth alongside other savings to help loved ones purchase their first property.

Retirement Advantage’s data reveals that in the first half of 2017, 2% of customers said they were purchasing an equity release product so that they could help a first-time buyer. Over the same period, figures from the Equity Release Council show that there were 16,805 new equity release customers nationwide. By applying its experiences across the whole of the UK, Retirement Advantage estimates this equates to 13 people each week being helped on to the first rung of the property ladder thanks to equity release.

Alice Watson, head of marketing at Retirement Advantage Equity Release, said: “Much has been made of the financial support first-time buyers get from relatives. What we are seeing is that existing property wealth is a significant source of finance for that support. As the equity release market continues to boom and products grow in popularity, helping first time buyers comes up consistently as a common reason for choosing to release equity.

“People want to use the value stored away in their properties to treat themselves in retirement, in the shape of home improvements or holidays, but they want to help loved ones too. For the majority of over-55s, property is their single biggest source of wealth. Combined with the growing trend of families helping first time buyers onto the property ladder, it is likely we’ll see many more people become property owners thanks to equity release over the coming months and years.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Why planning must be part of the asylum debate

At 2pm today the High Court is due to decide on an appeal against...

How planning can help solve the asylum housing crisis

The scale of the asylum housing crisis is stark. According to Reuters, more than...

Limited company landlords take bigger share of buy-to-let market

Landlords holding investment property through limited companies are playing an increasingly prominent role in...

Latest property transaction data indicates market is “building resilience”

UK property transactions edged up in July as confidence begins to return to the...

Gateway Surveyors marks 20 years with focus on innovation and client service

Gateway Surveyors is celebrating its 20th anniversary this month, marking two decades of growth...

Latest publication

Latest opinions

Why planning must be part of the asylum debate

At 2pm today the High Court is due to decide on an appeal against...

How planning can help solve the asylum housing crisis

The scale of the asylum housing crisis is stark. According to Reuters, more than...

HMOs: market realities, future prospects, and the broker opportunity

The HMO sector remains one of the most dynamic parts of the private rented...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Other news

Why planning must be part of the asylum debate

At 2pm today the High Court is due to decide on an appeal against...

How planning can help solve the asylum housing crisis

The scale of the asylum housing crisis is stark. According to Reuters, more than...

Limited company landlords take bigger share of buy-to-let market

Landlords holding investment property through limited companies are playing an increasingly prominent role in...