Property wealth pays out £144 million in East Anglia
22 March 2017
- Retired homeowners are realising an average £72,000 from their homes, Key Retirement analysis shows
- Almost two thirds use the cash for home and garden improvements
Key’s Equity Release Market Monitor shows retired homeowners in East Anglia have made more than £72,000 tax-free by releasing wealth from their homes in the past year.
The detailed study found the main motivation for pensioners to release property wealth was to pay for home and garden improvements - nearly two thirds (64%) of East Anglian pensioners invested some or all of the cash on revamping their property. Retired homeowners in East Anglia are making the most of equity release for projects in and around the home - across the rest of the UK the average was 50%.
However nearly one in three (32%) pensioners in East Anglia used the money to clear debts on credit cards and loans including mortgages.
Families are also receiving the benefits of equity release. Almost a fifth (19%) of retired homeowners in East Anglia are using some or all of the cash to help out relatives with everything from money for deposits to buy their own home to helping with living expenses. In fact, they are more likely to use their property wealth to help family than go on holiday themselves – just 17% used some or all of the money to fund trips away.
Key’s data shows nearly 2,004 pensioners in East Anglia used their homes to help fund retirement last year, and released on average £72,000 from their homes, which were valued at an average of £260,151.
Dean Mirfin, technical director at Key (www.keyadvice.com), said:
“Property wealth is making a huge contribution to retirement planning and that is demonstrated by the large numbers of pensioners in East Anglia using equity release.
“Retired homeowners in East Anglia are the most inclined to spend on home and garden improvements in the UK, which is partly explained by the fact they can release as much as £72,000 and are able to tackle a range of financial issues.
“It remains the case that many pensioners in the region need to clear debts. Equity release is a real alternative for retired people who are seeing traditional retirement income solutions squeezed by historically low interest rates.”
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting www.keyadvice.co.uk/equity-release/request-a-free-guide