Homeowners in 53% of areas across England and Wales could access more than the average pension pot of £61,930 by using equity release, new research has found.
This is according to analysis by Legal & General Home Finance (LGHF) of median local house price data from the Office for National Statistics (ONS).
The most recently available ONS data, which outlined median house prices in England and Wales, saw an average increase of 7.5% between March 2020 and March 2021, and of 24% between March 2016 and March 2021.
In 2021, L&G customers accessed an average 24.5% of the value of their home through equity release, putting the expected amount that can be accessed across England and Wales at £72,988.
LGHF’s findings, therefore, suggested the average homeowner could access £5,000 more in 2021 than in 2020, and £14,000 more than five years earlier.
“In recent years, we have seen house prices increase to the extent that they will have become the most significant asset available to many UK homeowners,” commented LGHF CEO, Claire Singleton. “House prices have increased by an additional 11.8% over the year to September 2021, alone.
“We anticipate that using your home to fund your retirement will become more commonplace, whether that’s by downsizing to free up funds or releasing money tied up in your home through products like lifetime mortgages. This, in turn, can have a broader economic impact, with our data demonstrating that every £1 released via a lifetime mortgage can generate £2.34 of economic growth.”
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