Retired homeowners released £1.71 billion worth of property wealth in the first six months of 2018, up by 37% on the previous year, according to latest analysis of the equity release sector.
Key Retirement’s Equity Release Market Monitor reveals that property equity worth £9.5 million worth of property wealth was released every day in the six months to July 2018, with the number of equity release plans sold up by 29% when compared with the same period in 2017.
The equity release adviser reports that customers in teh UK are receiving an average of nearly £78,000, with families increasingly benefits from this property wealth windfall.
Retired homeowners in London released the most wealth at an average of £133,000 per person over six months, followed by the South East (£90,000) and the South West (£77,000).
Some 28% of retired homeowners used some or all of the money for gifts for families, compared with 23% in the first half of 2017.
But the most popular use of the money released was to fund home improvements, with 63% of retirees spending some of the money on their houses while 33% splashed out holidays.
Settling debt was also a factor for many homeowners, with one in five (22%) using the cash to clear outstanding mortgages and 32% paying off credit cards or loans during this six-month period.
Dean Mirfin, product officer at Key Retirement, says: “More money was released in the first six months of 2018 than in the whole of 2015 as records continue to be broken across the market with expert independent advisers playing a vital role.
“Property wealth is not just helping to transform an individual’s retirement planning but is also helping their families with their financial needs. The growth in gifting underlines how much can be achieved when the average amounts being released are as much as £78,000. The Bank of Mum and Dad, or Gran and Grandad are changing lives, and not just their own.”