The average value of property used for equity release has risen by almost £17,000 over the past year to from around £407,000 to just over £423,000, according to data from Pure Retirement.
This year-on-year increase of 4% is considerably higher than annual house price growth, which was 2.5% over the same period from Q3, 2023 to today, according to the Nationwide index.
Pure Retirement’s own lending data reveal that the average house value for equity release also rose on a quarterly basis by 3.2% compared to Q2.
Overall house price growth from Q2 to Q3 was only 0.7%, which means that the average house price value among new lifetime mortgage customers has risen nearly five times as fast over the last quarter.
The majority of cases continue to come from owners of properties valued at between £250,000 and £399,999.
The share of lifetime mortgages lent against £1m-plus properties remained static at around 4% of all new initial advances.
Pure Retirement chief executive Paul Carter says: “These latest figures continue to underline the importance of developing later life lending products that meet a diverse range of audience profiles and needs.
“Additionally, they also underline the ways that these products continue to be seen as a viable and attractive means to achieving financial goals from people across the wealth and property value spectrum.”
