Equity Release Council comments on the ONS UK House Price Index for June 2021

Jim Boyd, CEO of the Equity Release Council, comments on the publication of the ONS UK House Price Index for June 2021, showing a 13.2% rise in the average UK house price to a record of £ £266,000.

“House price gains in the last year alone have been more than the average person’s private pension wealth. The biggest percentage gains have come in northern regions with the Midlands following close behind, which may go a little way towards ‘levelling up’ and reducing the wealth divide between households in different parts of the country.  

“As prices climb to record levels, the reality of today’s housing market means bricks and mortar will be part of the equation for many homeowners’ retirement income. People are borrowing larger loans for longer, but low interest rates make it more affordable than ever to build property wealth.  

“While our own research shows many homebuyers have faced a tougher challenge than their parents to climb the property ladder, the advantage of homeownership looks set to be an even more important building block of future generations’ financial wellbeing in later life than it is today.”  

Kindly shared by The Equity Release Council (ERC)

Main photo courtesy of Pixabay