A Key Retirement report has revealed that, during the first half of 2017, retired homeowners released £1.25bn in equity from their properties at the rate of £6.9m per day.
According to the findings, the new record high for the equity release market means more property wealth was released in the first half of 2017 than all of 2013 when the market was worth £1bn. The data showed that almost 100 retired homeowners took out equity release plans per day in the first half of this year as plan sales soared by 44% and the total value released increased by 33%.
Total plan sales grew to 17,656 from 12,246 in the six months and total property wealth released climbed to £1.246 billion from £934.378 million.
The average pensioner took £70,625 from their home. In London and the South East of England, where more than half the property wealth was released, customers cashed in nearly £114,000 and £82,000 on average respectively.
Northern Ireland recorded the biggest increase in plan sales at 77% followed by 56% in the South East. Northern Ireland also saw the highest rise in value released at 75% followed by the South West on 51%.
Around 61% of all sales were drawdown plans, including enhanced drawdown which offers enhanced terms to people with health or lifestyle conditions, compared with 39% from lump sum single advance lifetime mortgages including enhanced products.
Dean Mirfin, technical director at Key Retirement, commented: “With nearly 100 retired homeowners a day releasing an average of over £70,000 each, the equity release market is making a major contribution to retirement standard of living.
More property wealth was generated for pensioners in the first six months of this year than all of 2013, demonstrating how rapidly the market is expanding as record low rates drive more competition to the benefit of customers.
The amount of money being released means that customers can afford to help themselves and families while also sorting out issues such as interest-only mortgage repayments and debts.”