Equity release borrowers’ average property value rose 4% year-on-year to £423,000, analysis reveals.
According to lender Pure Retirement, this represents a noticeable shift after outpacing 2.5% annual and 0.7% quarterly house price rises recorded by Nationwide.
The majority of the lender’s cases continue to come from owners of properties valued at between £250,000 and £399,999, which account for nearly one in four or 37% of new plans.
Owners of £1m+ properties remain static, accounting for around 4% of all new initial advances.
Paul Carter, Pure Retirement’s chief executive, said: “These latest figures continue to underline the importance of developing later life lending products that meet a diverse range of audience profiles and needs. Additionally, they also underline the ways that these products continue to be seen as a viable and attractive means to achieving financial goals from people across the wealth and property value spectrum.”
Quarter-on-quarter, total equity release lending rose by 6% to £615m while new plans agreed increased by 2% to 5,370, according to the Equity Release Council (ERC).
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This marked the first time in two years that the market has recorded two successive quarters of growth.
Meanwhile, further advances were up 8% on the previous quarter but total plan numbers and returning drawdowns fell by 0.3% and 3% respectively.
The ERC noted that consumer confidence was “steadily returning” to the market.
