The record figure surpasses the previous high of £5.6 trillion from mid-2022, when the housing market was boosted by pent-up demand after the pandemic
Recovering house prices in the first half of 2024 have boosted the total value of the nation’s property equity to an unprecedented £5.7 trillion, according to the Equity Release Council.
The record figure surpasses the previous high of £5.6 trillion from mid-2022, when the housing market was boosted by pent-up demand after the pandemic.
Total UK mortgage debt of £1.6 trillion compares with an overall property market value of £7.3 trillion. This gives an average LTV of just 22.2%, with the remaining 77.8% of the housing market effectively owned in equity or cash.
This loan-to-value has declined from 28.9% ten years ago, and means for every £10,000 of property owned, £7,720 is backed by cash with mortgages covering only a minor share.
Government data shows more than half (55%) of homeowners in England are aged 55+ and 76% of over-55s own their own home outright.
The council’s analysis indicates the average over-55 owner-occupied household in the UK has £321,213 of equity in their home.
While the most property-rich regions are concentrated in the south of England, every region and constituent country of the UK is home to significant reserves of housing wealth among its older population, which add up to more than £3.4 trillion in total.
For households, the £321,213 of equity in the average UK over-55 homeowner’s property is worth around 10 times the average pensioner couple’s annual net income of £38,168.
Jim Boyd, chief executive of the Equity Release Council, says: We have seen the property market start to recover which has pushed the total value of unmortgaged residential property in the UK to more than £5.7 trillion.
