New research has found that equity release contributed over £7 billion to the UK economy last year.
This is according to Legal & General Home Finance and the Centre for Economics and Business Research (CEBR), highlighting just how much retirees unlocking cash from their properties supported the economy during 2017.
The ‘Silver Spenders’ report found that in terms of UK gross output, equity release contributes up to £7.1 billion, with each £1 of housing wealth unlocked through an equity release product generating £2.34 for the economy.
Commenting on the report was Chris Knight. The Chief Executive Officer at CEBR stated: “Our ‘Silver Spenders’ research shows that homeowners aged over 55 are boosting UK gross output by up to £7.1bn, with the benefits being felt across industries ranging from construction and manufacturing to health and social services. Not only are these older homeowners accessing equity that would otherwise have remained locked up in their properties, whether for a holiday or a home renovation, but these funds are filtering through the economy as well. That is boosting the spending power of our businesses, generating jobs and spurring economic growth across the UK.
“With longevity increasing and awareness about lifetime mortgages growing, the role of equity release and its contribution to the national economy is set to grow further. Last year saw the sector surpass £3bn and a £5bn plus market is a strong possibility by 2020.[4] But there is an estimated £1.5 trillion of property wealth in hands of Britain’s over-55s, so there is the potential for retirees and their housing equity to play a much bigger role in boosting UK GDP in years to come.”
