Property values and equity growth
Thursday 11th November 2021
The overall value of UK housing stock has risen from £5.67trn to £6.42trn over the last year, with private property wealth reaching a new high of £4.87trn, according to figures released by the Equity Release Council.
While the level of mortgage debt has reached unprecedented levels, now above £1.5trn, fast rising property prices mean that for every £1 of mortgage debt, there is more than £3 of equity in our homes.
The recent national lockdowns turned borrowers into a nation of savers as households repaid more than £19bn of mortgage capital during both Q1 and Q2 2021, having never repaid more than £18bn in any previous quarter. The Equity Release Council figures suggest that more than three quarters of the value of the average home is tied up in equity rather than debt.
More than ever, clients need to consider planning their estates to mitigate the impact of Inheritance Tax and at the same time have in place Wills and Lasting Powers of Attorney. At Montgomery Estate Planning we specialise in helping clients leave a legacy through careful and comprehensive planning which also extends to charitable giving, so if this is something you would like to know more about then please get in touch.