Analysis from leading lifetime mortgage provider Pure Retirement continues to show rising average property values among new customers, highlighting the diverse customer profile equity release continues to serve.
The lender saw an average property value in Q4 of £400,900 – while a reduction from the mid-year peak of over £423,000 owing to the traditional Q4 seasonal lull in overall market activity, it still represents a 25% uplift in average house value compared to the £391,300 seen in Q4 2023.
Around four in ten (39%) of new business comes from properties in the £250,000-£399,000 value range, up from 37% in Q3. Additionally, Just under one in four (24%) of new plans come from owners of properties valued at between £400,000 and £699,000 – however, this represents a decrease from the 27% seen in Q3 and the 25% seen in Q4 of 2023.
Conversely, the proportion of new lifetime mortgages being taken out from owners of properties valued at between £700,000 and £999,000 is the highest it’s been at any point over the preceding twelve months, accounting for 7% of the lender’s new business in Q4 2024 (compared to 5% in Q3 and 6% in Q4 2023).
Speaking of the findings, Pure Retirement CEO Paul Carter says: “The latest quarterly figures demonstrate the variety of customers that lifetime mortgages continue to serve. Irrespective of the value of their property, many people continue to see lifetime mortgages as an effective route to reaching their financial goals, and we look forward to continue offering a range of lifetime mortgage solutions suitable for a range of circumstances.”
