One million pound was added to the value of properties in the UK every minute last year as the pandemic boom continued to drive up house prices.
The UK’s total housing value reached £6.7trillion by the end of 2021, rising by £1.6bn each day according to analysis from the Equity Release Council. When mortgage debt is discounted, that leaves the UK with £5.2tn of property wealth overall.
House prices have soared since the pandemic began and some homeowners have been capitalising, using equity release to draw an average of £125,000 from their homes – more than seven years of retirement income for many.
David Burrowes, chair of the Equity Release Council said: “After years of putting money away in bricks and mortar, older homeowners are turning the tables and taking funds from their homes in order to boost their retirement income, meet one-off costs and gift a living inheritance to family.
“With £1million added to the value of UK housing every minute last year, the options afforded by property wealth will feature in many people’s thoughts as they make financial plans for the future.”
The rise in property value comes as annual house price growth increased by 14.3 per cent, according to Nationwide Building Society analysis released last week.