Retired London Homeowners ‘Are The Most Generous To Family’
05 March 2019
RETIRED LONDON HOMEOWNERS ‘ARE THE MOST GENEROUS TO FAMILY’
- More than a third of Londoners who took out equity release helped family or friends
- Average value of equity released in London is nearly £137,000 with more than £663 million of property wealth paid out a year
Retired homeowners in London are the most generous in the country helping out family and friends with their property wealth, new data from the UK’s leading independent equity release adviser Key reveals.
Families and friends were among the biggest beneficiaries with 36% of retired Londoners giving some or all of the cash to help them. That makes Londoners the most generous in the UK – across the country 27% of retired homeowners used the cash to help family.
| Region | Percentage of equity release spent on friends and family |
| London | 36% |
| South East | 31% |
| East Midlands | 29% |
| North West | 29% |
| Scotland | 27% |
| South West | 26% |
| Wales | 25% |
| Yorkshire & Humberside | 25% |
| West Midlands | 24% |
| East Anglia | 22% |
| North East | 13% |
| Northern Ireland | 12% |
Average pay-outs from homes in the capital last year were nearly £137,000 with £663 million of property wealth released, Key’s figures show.
Money gifted is typically being used to clear debts, pay for significant life events such as weddings or to fund house deposits. Key’s figures show other major uses of gifts are to pay for large family holidays, fund university fees or buy cars.
The size of the property wealth pay-outs in London – nearly 80% more than the national average mean retired homeowners in the capital can address a wide range of financial issues, the figures show.
The most popular use of equity release is for funding home and garden improvements with 61% re-investing some or all the money in their houses so that they can stay in their homes.
Around 37% paid for holidays while 28% used some or all the cash to clear credit cards or loans and 20% were able to clear existing mortgages.
Will Hale, CEO at Key, said: “Retired homeowners in London have benefited the most from house price growth and are ensuring that their families and friends are benefiting too with nearly two out of five using their property wealth to help children and grandchildren
“Their generosity highlights the intergenerational benefits of equity release for families with money being used to clear debts, fund university fees and pay for house deposits and weddings. Londoners however face the same issues as retired homeowners throughout the country and debt problems as well as needing cash for day to day living are also important for equity release customers.
“Good independent expert advice is key to ensuring that older homeowners receive the most benefit from their property wealth and use it in the most appropriate way for them and their families.”
The table below compares London with the rest of the UK
| LONDON | UK Average | |
| TOTAL PROPERTY WEALTH RELEASED | £663.715 million | £3.600 billion |
| TOTAL PLAN SALES | 4,850 | 47,081 |
| AVERAGE PROPERTY WEALTH RELEASED | £136,850 | £76,473 |
| HOW MANY SPENT ON THE HOME | 61% | 64% |
| HOW MANY SPENT ON HOLIDAYS | 37% | 33% |
| HOW MANY SPENT ON FAMILY | 36% | 27% |
| HOW MANY PAID OFF DEBTS | 28% | 31% |
| HOW MANY PAID OFF MORTGAGES | 20% | 22% |
| HOW MANY ARE PAYING BILLS | 17% | 12% |
| HOW MANY SWITCHED FROM ANOTHER PLAN | 9% | 3% |
| HOW MANY ARE REDUCING IHT | 4% | 1% |
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting https://www.keyadvice.co.uk/equity-release/is-it-right-for-me
ENDS
Notes to Editors
* Key market data for 2018 The Monitor uses Key’s data to reflect the market as a whole. The data reflects both members and non-members of the Equity Release Council, and provides the most detailed analysis of the equity release sector. The figures reflect new customers and the equity they released rather than any ongoing withdrawals via products such as drawdown.
For more information or to request a case study, please contact:
Lee Blackwell
Director of Public Relations and Public Affairs
Key Retirement Group
07384511140
E-mail: [email protected]
Rachel Mann
Key Retirement Group
01772 508322
E-mail: [email protected]
Citigate Dewe Rogerson
Katie Ormrod
0207 282 1023
E-mail: [email protected]
About Key
Part of Key Retirement Group, Key is the UK’s largest independent equity release broker – committed to high levels of customer service and the belief that good advice is key to ensuring people make smart sustainable choices around how they use their housing equity.
With over 60 industry and consumer awards under their belt, the Key team offer advice on equity release, later life mortgages and retirement interest-only products. The company also provides support with estate planning including wills and lasting power of attorneys.
Key is committed to putting customers at the heart of what it does and has a score of 9.8 from over 14,100 scores on the independent review site, Trustpilot.
Based in Preston, Key is committed to being independent, transparent and straightforward.