Equity release on the rise

The surging growth of the equity release market suggests it is fast becoming a go-to option for many homeowners over 55.

After a rapid rise in the amount of housing equity being withdrawn in the past 12 months, in particular, equity release is now a £3bn-a-year industry. This still represents less than half of the £6.5bn withdrawn from pensions using freedoms during the same period, but it is the direction of travel that catches the eye. Of note, The Equity Release Council reported that almost £10 million of housing wealth was withdrawn from UK property every day during the first quarter of 2018. Many remain concerned about the implications of such practices. But one often cited barrier to growth – a lack of household names getting involved in the market – is starting to lower.