The UK Market monitor report in 2017 showed a varied view of growth by region. In this month’s article, we look at the two highest growing areas. East Anglia and The South West. We investigate why these might be the biggest growing areas and try to understand the external influences that make equity release a genuine option to generate cash for retirees in these regions.
We start with East Anglia
Some key stats for 2017
So why has East Anglia seen such a rise in equity release users?
Well, for a start, house prices have significantly increased in the past 12 months, by 5%. The average house price now stands at £289,000. Surely for any 55 plus homeowner, the appeal of a property that has that much cash tied up which can be used to further benefit their own or families friends lives is a big reason. But why such the rise and why the need? Much could be down to the commutable towns from London. If you live in the surrounding counties of London with easy access to the well-paid jobs in the city- naturally the value of your home will go up. For retirees living off a pension, this could well be a financial saviour. One that you can use to not only improve your own home but help support your loved ones: a deposit for a new home, education fees for grandchildren even supporting good friends who find themselves out of financial luck. All of these are valid reasons to consider equity release, and when property prices are so high it’s no surprise people in East Anglia are seeking advice to see if its right for them.
Mr & Mrs L, Norfolk
The South West
Some key stats from 2017
Similarly, to East Anglia, the South West has benefited from significant house price growth in the last 12 months. In fact, last year 5 of the top 20 towns to benefit from the largest house price increase came were situated in the South West.
The South West is increasingly becoming a haven for the pensioner to retire too. In July 2017 the Daily Telegraph found that Wiltshire was the favoured place to retire in. With over 2,250 over 65’s making residential moves in the previous year. But are they retiring with dependants still living at home? More people every year are using equity release to help friends and family. So maybe having a property that is worth increasingly more entices customers to investigate equity release as an option in retirement.
Mr & Mrs W, Gloucestershire