Manchester equity release – market report

Our latest report on equity release in Manchester

Written in line with our editorial policy.

We explore how property prices over the last decade have helped to fuel a 38% growth in Manchester and the North West’s equity release market. We also take a look at the impact of rising property prices, including how much more tax-free cash the average Mancunian could unlock from their property.

The equity release industry enjoyed continued growth last year. A record-breaking 93,421 new and returning customers chose to release £6.2billion of their property wealth, according to Equity Release Council figures.

The record average house price reached in the UK towards the end of 2022 was no doubt a contributing factor. In fact, in the last five years alone, homeowners in Greater Manchester have enjoyed a 37% increase to their average house price. It means thousands of homeowners across the region are likely to have significantly more equity in their properties than when they purchased them.

In this article we’ll explore the latest trends for equity release in Manchester, including:

• What is involved in equity release?
• Average Manchester house value rises £85k in ten years.
• What does the house price boom mean for Manchester equity release potential? 
• Growth in the Manchester equity release market.
• Does Manchester Building Society offer equity release?
• Will slowing property prices affect the Manchester equity release market?
• Find out more about Manchester equity release.

What is involved in equity release?

Before we delve more deeply into our equity release Manchester market report, let’s take a moment to understand how a plan works. 

An equity release plan allows homeowners aged 55+ to unlock a percentage of their home’s value without having to sell up, move house or arrange a remortgage. The tax-free cash unlocked can be spent in any way the homeowner wishes.

A lifetime mortgage is the most popular type of equity release plan and is available as a lump sum or drawdown plan.

One of the biggest benefits for Manchester equity release customers is that there are no mandatory monthly repayments to make on the loan. This is because the loan plus interest rolls up each month until the plan comes to an end. This is typically when the homeowner/s pass away or move into long-term care, which is when the loan is repaid through the sale of your property. 

Customers can make voluntary payments up to a certain amount each year to reduce the interest accruing, but there is no obligation to do this.

Thanks to the soaring prices of housing in the region over the last decade, Manchester equity release customers have a strong potential to release the tax-free cash they need.

Trying to find a Manchester equity release company? Our selected advisers can provide all the information and quotes you want from the comfort of your own home. Call 0808 178 3055 or request a call back to talk to an adviser today.

Average Manchester house value rises £114k in ten years

When a homeowner’s available equity is calculated, the value of their property is one of the main deciding factors. This will determine how much tax-free money can be unlocked with an equity release plan. Typically, the higher the property is worth, the more cash is available. 

With that in mind, our analysis of equity release in Manchester begins with a breakdown of property prices in the region over the last decade.

It’s a well-known fact that UK house prices have risen significantly over the last decade. Many homeowners in and approaching retirement are in a strong position due to owning their home for quite some years. As a result, they may have benefited substantially in that time from the overall market increases.

The below table shows how the average home in Manchester has increased in value since 2012, compared to the average house price in the UK:

SOURCE: Land Registry House Price Statistics in Manchester Dec 2012 – Dec 2022.

To sum up the numbers in the above table, the average house price in Manchester rose by £114,847 in the last decade – a growth of 64%.

In 2021 alone, £1million was added to the UK’s housing market every single minute according to the Equity Release Council. Despite the economic uncertainty that cast a shadow over 2022, house prices continued to increase. In Manchester, the average house price rose from £208,127 in Dec 2021 to £238,049 in Dec 2022 – an incredible £29,922 in just 12 months. That’s just a few hundred pounds short of the UK’s average regular earnings – before tax or housing costs – of £30,576.

Owners of detached houses in Manchester saw the biggest monetary rise in property prices in the 12 months leading up to Dec 2022. The average detached home in the region rose by a staggering £52,017 in 12 months to £417,394. That’s a 13.2% growth in one year. 

Terraced properties also saw a significant average rise of 13.8% in 2022, taking them to £191,894 – the largest percentage increase. Semi-detached homes in Manchester enjoyed increases of 13.5% over the year, taking them to £266,939.

According to Manchester Evening News, the most expensive area to live in Manchester is Didsbury, where the average home fetches £359,631. At the other end of the scale is Harpurhey in Manchester, where the average home can be picked up for just £125,939.

What does the house price boom mean for Manchester equity release potential?

Later life homeowners in Manchester potentially have a huge amount of equity sitting in their homes today. But how much tax-free money can homeowners in Manchester unlock?

Equity release plans typically allow homeowners to unlock between 20-60% of their property’s value. Exactly how much you can release depends on age (the older you are the more you can unlock), property type and the location of their home. Health is also taken into account, with some qualifying conditions entitling the homeowner to a higher cash release.

The table below gives an example of how much equity a typical 74-year-old living in Manchester might have been able to release from their home through equity release over the last decade:

(These are example figures based on a 74-year-old releasing 40% of the total value of their home with a standard lifetime mortgage.)

The homeowner we’ve based these figures on could potentially unlock £29,769 more than they could have done just five years ago. Furthermore, they could potentially now access a huge £45,939 extra tax-free cash than a decade ago, simply for owning their home.

The growth in Manchester’s equity release market

With house prices doing so well in Manchester, it’s easy to see why so many are now choosing to tap into the extra funds. From home improvements and holidays, to help with paying bills and paying off the mortgage; equity release offers a solution for those who may otherwise be struggling to make ends meet.

The end-of-year figures compiled for the Equity Release Council’s Autumn 2022 Market Report perfectly summarises the popularity of equity release in Manchester. In 2021, almost one in five (18%) of new equity release plans were in the northern regions, including Manchester. This compares to 11% in the whole of Wales, Scotland and Northern Ireland.

It also reveals that between the years 2017-2021 there was a 38% increase in the number of equity release plans arranged in the North West.

In addition to booming house prices, the equity release industry is likely to be reaping the benefits of its recent efforts to offer more flexibility and choice. There are now hundreds of plans to choose from, with many new plans and product features offering flexible interest-reducing options.

For instance, since March 2022, all new equity release plans allow customers to make voluntary partial repayments on plans to reduce interest. Some plans even allow customers to repay up to 10% of the loan plus interest every year penalty-free. It means Manchester homeowners could effectively pay off their plan in as little as ten years.

Will slowing house prices affect the Manchester equity release market?

Savvy equity release customers naturally pay close attention to house prices in their area. So when it comes to monitoring economic and property growth, you’d be hard pushed to find another city outside London with such impressive figures.

But with gloomy forecasts of a drop in UK house prices by as much as 10% in 2023, how will equity release customers fare in the city? The good news is that even with the predicted drop in value, properties across Manchester would still be much higher in value than they were ten years ago. This extra equity could go a long way in helping later life homeowners in the region.

Demand for properties set to continue

Thanks to continued regeneration efforts in the region, Manchester has cemented itself as one of the UK’s most enviable cities to live and work. Regeneration projects have seen billions spent on the city, with Spinningfields and MediaCityUK helping to draw businesses and investors to the region. 

As a result, the city has seen rapid population growth in recent years. According to The Guardian, the population in the city centre rose by 4.9% between 2021 to 2022 alone. Forecasts from the council predict the 69,835 residents currently living in Manchester will increase to reach 100,000 by 2025.

Gavin White, the council’s executive member for housing and employment, said:

“The number of jobs being created (including specialist sectors like advanced manufacturing, digital and tech), culture, sport – and not just football – along with a rate of graduate retention not seen previously … are all reasons why Manchester continues to enjoy enviable city growth.”

With demand for housing expected to keep prices elevated in the region compared to a decade ago, will Manchester’s equity release market grow in 2023? Only time will tell.

Does Manchester Building Society offer equity release?

Are you looking for a reputable equity release company in Manchester? If so, you might be wondering if Manchester Building Society equity release plans are available. We have checked and this building society does not offer any form of retirement lending, but the good news is that we can help.

If you live in the region and are currently perusing equity release, Manchester homeowners can call Equity Release Wise for an unbeatable service. Our team will be happy to answer any initial questions you have about a plan, before putting you in touch with a qualified equity release adviser. 

Find out more about Manchester equity release

Anybody thinking about unlocking some of their property wealth should seek the guidance of a qualified equity release adviser who is free to advise if a plan is right for you or not.

You don’t need to scour the internet for a reputable equity release company. Manchester homeowners can quickly and easily get in touch with the team at Equity Release Wise and our friendly team of selected advisers, who are specialists in equity release. Manchester homeowners can explore all options, ask any questions you might have and gather all the quotations needed from the comfort of your own home. 

Remember, you’ll only be charged a fee for the advice provided if you choose to go ahead with your recommended plan. This is usually paid from the money that you unlock. 

Find out if you qualify for an equity release plan and how much you could release by speaking to Equity Release Wise today. Our selected advisers can search for the best deals for you in just a few minutes. Find out what’s possible for you: get a free quote or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.