Over-55s Have £321,213 Equity in Property on Average

Research from the Equity Release Council has revealed that the total value of the nation’s property equity has swelled to £5.7 trillion – a record level. According to the council’s analysis, this has been boosted by recovering house prices in the first half of 2024. This new record has surpassed the previous high of £5.6 trillion, which was recorded in 2022, when the housing market had a boost of pent-up demand following the pandemic.

The average loan-to-value (LTV) has dropped from 28.9% a decade ago to 22.2%, with the remaining 77.8% of the housing market effectively owning equity or cash.

The UK market has historically performed well for capital appreciation, leading to record levels of equity in homes. This is one reason why buy-to-let investment is a popular type of property investment.

The Equity Release Council report concludes that older homeowners should consider the role that property wealth can play in later-life finances.

Jim Boyd, CEO of the Equity Release Council, said: “While we haven’t seen double-digit growth in house prices this year, we have seen the property market start to recover, which has pushed the total value of unmortgaged residential property in the UK to over £5.7 trillion. Much of this is in the hands of the older generation, and our findings make it crystal clear that your prospects of living comfortably in retirement will rest on firmer foundations if you own your own home and include property wealth in your financial plans.

“Spare funds aren’t easy to come by in the current climate, either for households or for government, so it’s vital that we help older homeowners consider the role that the £3.4 trillion worth of property wealth can play in later life finances.

“Whether it is boosting income, managing unsecured debt, paying for care or helping to get family members onto the property ladder, there is a huge amount of potential tied up in bricks and mortar.”