Equity release funding is predicted to reach record levels in 2019. New research from real estate giants Savills recently revealed that owner occupiers in the UK, both with and without existing mortgages, have almost £5 trillion of property wealth.
Meanwhile, the latest figures from Equity Release Council, expected this month, are likely to show the market for equity release is now worth £4 billion.
Market could hit £6bn mark
Equity release allows property owners to access some of the value of their property through new lending. Many older homeowners often do this to help their children or other family members get on the property ladder themselves.
A survey of independent financial advisers (IFAs) in the UK by Canada Life Home Finance has revealed that almost nine in 10 (86 percent) IFAs expect 2019 to be a record year for equity release.
Two in five (40 percent) say the market will grow by at least £2bn this year to reach £6bn. In 2016, the whole market was worth just £2bn.
Only 5 percent of advisers think the equity release market will decrease in value this year, with one in 10 expecting it to stay at the same level of lending as 2018.
Sector is thriving
Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “The equity release sector is thriving.
“Recent figures show that almost as much was lent in the first three quarters of 2018 as the whole of 2017. And this research into the views of UK advisers offers a real vote of confidence for the sector.
“It’s clear they expect consumer demand to continue to grow apace, aided by advisers and providers increasing education, demystifying the products and making them more widely accessible.
“While uncertainty over the global political and economic situation may continue to hold back the housing market, equity release will still be a sensible solution for many – especially those using it as part of a more holistic approach to retirement planning.”
1st stop for equity release conveyancing
Homeowners intending to release equity from their property in 2019 should make In-Deed their first stop for high-quality, low-cost conveyancing services.
We work with expert property solicitors across England and Wales who have vast experience in dealing with the legal work required for equity release.
Talk to our team now on 0800 038 6886 or get an instant, no-obligation quote for equity release conveyancing online.