Value of private property has topped £6tn

The total value of private property in the UK topped £6tn for the first time on record last year. In addition, mortgage-holders made an “unprecedented” £5.1bn worth of overpayments in the final quarter of 2020, the Equity Release Council said. But regular mortgage repayments remained 2% below pre-pandemic levels in the final quarter “as households who have been negatively impacted by the pandemic use relief measures such as mortgage holidays to defer their repayment obligations”. The average loan-to-value of property dropped to 24.6%, the lowest level since before 2007/8, and means the average UK property owner held equity of £189,549 alongside an average loan of £61,951 last year. The number of new equity release plans taken out rose 19% to 21,917 in the final half of 2020. The number of equity release products available rose to record highs, with a total of 488 products available by the end of 2020.

Sunday Express (11/04/2021) The Mail on Sunday (11/04/2021)