The latest figures from equity release provider, Responsible Equity Release, have revealed that during January UK homeowners took more than three times the average annual UK salary out of their properties.
According to analysis, the average equity release plan handled by Responsible Equity Release last month was £87,035 - almost £60,000 more than the average UK salary of £27,600, and a record amount for a single month, surpassing the £84,028 average taken out by homeowners in November 2017.
Total amount of equity release by homeowners in January was also up almost a quarter on December 2017, and almost three times more than the corresponding month in 2016.
The New Year has started off where 2017 ended, as the popularity of equity release shows no signs of waning. Innovation in the equity release sector has helped create more mass appeal, unlocking the potential of the product to people who may not have considered equity release previously.
Regionally, the total amount of equity released by homeowners in Yorkshire and the Humber and London was up 149% and 85% last month on December 2017. While homeowners in the South East increased the average amount they released from their homes, from £79,949 in December to £124,962 in January.
Steve Wilkie, managing director, Responsible Equity Release, comments: “Last year equity release became mainstream. The equity release sector has innovated to meet the needs of the retiree and has attracted a new audience to a product that has often been seen as niche. We are seeing more pensioners turning to equity release as a viable income source, to fill the retirement income gap left by poor performing savings accounts.
Equity release has effectively become the second pension for thousands of retirees. Pensioners have realised their home is an asset that can work for them during their lifetime - and not just to help make their retirements a little more comfortable, but to also support family members at crucial points in their life when costs are often at their highest.”