Equity Release: Bognor tops equity release chart
Bognor Regis top equity release hotspot
Friday, 25 Apr 2008 14:38
Bognor Regis is the UK capital for equity release.
High populations of those over the age of 60 and 80-years-of-age - 31.8 per cent and 8.4 per cent respectively, compared with national averages of 20.9 per cent and 4.2 per cent – means Bognor Regis sees 68.2 equity release plans per 10,000 residents.
Spalding and Kings Lynn – in second and third places – saw 43.5 and 41.7 equity release plans per 10,000 residents, according to data from Home & Capital.
Simon Little, business development director at Home & Capital, said: "Many people choose to retire by the sea. They quickly integrate into the community and with more time to themselves they enjoy improving their home and tending their gardens.
"With the perennial popularity of these areas, house prices are buoyant and they build up substantial equity in their homes – the average retired person has housing equity worth over £260,000.
"But when they need some extra cash, their attachment to their homes means they just don’t want to move and downsize. Equity release can allow them to stay in their home and raise a lump sum or an income."
After Bognor Regis, Spalding and Kings Lynn, the most popular equity release spots judged on plans per 10,000 were: Deal (36.2), Bedford (18.2), Kidderminster (17.7) and Norwich (16.6).
Mr Little said: "The four most popular towns for equity release – Bognor Regis, Spalding, King’s Lynn and Deal – are all on or near the coast, as well as having an above average elderly population.
“We can be sure that these towns will continue to be attractive retirement locations for Britain’s elderly population, and equity release is likely to grow in popularity there – and in other parts of the country.
He continued that while growth in equity release has been fairly restrained to date, he expected the market to pick over the coming years.
"Even at these times of financial turbulence in the financial markets, equity release solutions continue to be available for customers who need them.”
Daniel Barnes