Over-55s taking advantage of the stamp duty holiday have driven a 116% year-on-year increase in the number of people using equity release for property purchase, according to new data from more2life.
The equity release lender revealed that the same period – January to August 2021 compared to January to August 2020 – also saw a 113% increase in the amount of equity used to fund property purchases.
This increase coincides with the introduction of the Stamp Duty Land Tax (SDLT) holiday in July 2020, highlighting a trend in over-55s increasingly using equity release to help them move home.
more2life’s research also highlighted that property purchase cases increased by 208% between H1 2020 and H2 2020, and while this started to slow as the SDLT holiday deadline loomed, property purchases funded by equity release were still 234% higher than H1 2020.
The average property purchased with the support of equity release was £362,742, a figure slightly higher than the average for all properties (£355,155), while the amount released (£91,603) was also up on the average for all properties (£85,541).
“It’s clear from these figures that the SDLT holiday proved to be an opportunity for retirees looking to purchase their forever homes, and that many of them have turned to equity release to boost their buying power,” commented more2life CEO, Dave Harris.
“The dramatic rise in equity release used for property purchases since the first half of 2020 highlights how unlocking property wealth is a viable solution to help retirees obtain the home they desire, whether that’s to meet their changing needs in retirement or to move closer to family and friends.
“While the tapered SDLT holiday might be coming to an end soon, equity release will remain a valuable tool for over-55s looking to purchase their dream home.”
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