Average property value for equity release rises to £423,000

The average growth of equity release property values outpaces UK housing market

Written in line with our editorial policy.

Analysis by the equity release specialists Pure Retirement reveals that the average property value of borrowers increased by 4% year-on-year, reaching £423,000. 

This growth has outpaced the general UK housing market, where Nationwide reported annual house price rises of 2.5%.

According to Pure Retirement’s data, the average property value used for equity release has increased by nearly £17,000 over the past year, rising from approximately £407,000 to just over £423,000.

Pure Retirement say that 37% of the new equity release plans it provides come from properties valued between £250,000 and £399,999. 

Meanwhile, owners of properties worth over £1 million have remained steady, representing just 4% of new advances.

According to Pure Retirement’s CEO, Paul Carter, these figures emphasise the need for equity release products that cater to a diverse range of property values and financial needs. 

Carter noted that equity release remains “a viable and attractive means to achieving financial goals for people across the wealth and property value spectrum”.

Why house prices matter in equity release

For those looking into equity release, rising house prices are relevant because they impact the amount you can borrow. When you request an equity release quotation to see how much tax-free cash you could unlock, the amount will be largely based on the value of your home. Generally, the more your property is worth, the more cash is available to unlock. 

Here’s a breakdown of other key factors affecting how much you can borrow:

• Age. Generally, the older you are, the higher the LTV you may qualify for.
• Health and lifestyle. Certain health conditions or lifestyle factors may allow you to borrow more.
• Interest rates. Lower equity release interest rates can improve affordability and may increase your borrowing capacity.
• Product type. Some plans offer different borrowing limits, so choosing a plan that suits your needs is crucial.

How to check your eligibility for a plan

By talking to one of our selected equity release advisers, you can check your eligibility, ask any questions you have and get quotes from leading UK equity release providers. 

You can find out how much you could borrow online, or talk to one of our selected advisers by calling 0808 178 3055 or request a call back. 

Remember, your initial consultation and appointment with an adviser are free and without obligation. You only pay a fee for advice if you decide to go ahead with a plan, and this can be paid from the money you release.

Sources

Average value of property used for equity release has risen by almost £17,000, from around £407,000 to just over £423,000: Rise in the value of homes used for equity release. Mortgage Finance Gazette. Accessed 04 November 2024.

Majority of new equity release plans continue to come from properties valued between £250,000 and £399,999: Average property value of equity release borrowers rises to more than £420,000. Mortgage Solutions. Accessed 04 November 2024.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn