£10bn increase in equity release value | moneyfacts.co.uk
MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


Lieke Braadbaart

Online Writer
Published: 31/01/2018

There is good news for homeowners looking to use some of the equity that is locked in their home, as the value of equity release increased by £10 billion in the last three months of 2017, reaching a total of £375 billion. This means that there is a lot of potential wealth available to those over 55, if they can and want to access it.

That said, the value of the equity release market did see a slight fall compared with the third quarter of 2017, of 0.01% or £55 million, due mainly to a slowdown in house price growth. This is according to data from Retirement Advantage, with its head of Product and Marketing, Alice Watson, stating: "Despite the dip in house values at the end of 2017, the total potential value of UK equity release is up by nearly a fifth compared with its pre-crash peak in 2007."

So, while there is some reason for caution if house prices continue to grow more slowly or even stall, there is still plenty of benefit to be found in equity release – and this goes for buy-to-let investors as well.

Additional figures show that the value of UK buy-to-let properties increased as well in 2017, reaching a total of £46.8 billion in the last quarter of 2017, compared with £45.5 billion a year earlier. It even increased by £100 million (0.2%) compared with the previous quarter.

"For many, their property is the most valuable asset they own and typically worth far more than their savings," said Alice. "Equity release will not be suitable for everyone, but savers who think holistically and discuss property alongside other assets with their financial advisers are best placed to live the retirement they want."

What next?

See if equity release could be for you by reading our FAQ on the subject or going to our equity release page


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

blue spots


Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy