Equity release customers benefiting from house price rises

New research from equity release expert Key Retirement Solutions suggests some retired homeowners are really benefiting from higher house prices.

Its study shows that the value of homes owned by those of retirement age has risen by nearly £2 billion since January. People aged 65 and over reportedly had £767 billion of equity in their homes in May, up £1.88 billion compared with January.

Despite this apparent good news, the data varies dramatically according to property location. Those living in Scotland have seen equity values drop 7.8% since the start of the year, while people living in the West Midlands, Wales, Yorkshire and Humberside and the south east of England have also experienced a decline.

Meanwhile, homeowners in the north east of England saw equities rise 4.6% and those in the north west recorded a 1.8% increase.

Dean Mirfin, group director at equity release firm Key Retirement Solutions, said: “The housing market recovery remains patchy with winners and losers across the country.

“The property wealth owned outright by pensioners represents a potential source of income for the over-65s, particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates.”