UK Housing Stock Valued At Record £7 Trillion: a Must-Read in 2025
Contributors:
Expert VerifiedSovereignBoss adheres to a stringent code of editorial guidelines, but some articles may feature partner references. Here is an explanation for how we make money.
- The £7 trillion valuation marks a significant increase in home values, potentially leading to higher equity for homeowners across the UK.
- This valuation impacts the housing market by potentially raising property prices, making it harder for first-time buyers to enter the market.
- Homeowners can benefit from this situation by releasing equity from their property or selling it at a higher price.
- The valuation has been influenced by factors such as low interest rates, housing shortages, and increased demand in certain regions.
- The increased valuation can positively affect equity release schemes, allowing homeowners to release more money from their property's value.
In May 2022, the UK housing market grew by 12.8%1 before reaching a combined valuation of £7 trillion according to the Autumn 2022 Market Report published by the Equity Release Council (ERC).
In This Article, You Will Discover:
What Property Prices Mean for Equity
Rising property prices are reflected in the increased equity available to both homeowners and landlords–up to £46,000 since 2020.2
Current loan-to-value (LTV) rates sit at an average of 22.8%3 and are the lowest recorded since the 2008 global financial crisis, despite the additional £100 billion mortgage debt since the start of the COVID pandemic.
While the average equity release product rates have increased, the average property owner has seen their house price grow much faster than their mortgages
Over-55s Turn to Equity Release
Rising costs of living and growing challenges for younger people trying to reach the property ladder mean that we can expect an increase in the number of older property owners who turn to equity release products and other retirement mortgage alternatives.
The ERC predicts that at least 100,000 new and current property owners may take advantage of this turn of events and apply for equity release products to access the more than £1 trillion4 now available.
According to Head of OneFamily Advice Matthew Ellis, “equity release is enabling people to make adaptions to their property that will allow them to stay in the familiar surroundings of their own home rather than having to downsize to a retirement flat".5
Equity Release Benefits Homeowners’ Families
In addition, research finds that the majority of the £155 billion6 released since the pandemic has been used to help younger adults pay for educational costs or to access the property market for the first time.
The ERC also cautions that it’s essential that homeowners consider qualified financial and legal advice from independent registered advisors7 before making any decision to release equity.
The ERC report also recommends that older property owners involve their families when reviewing any financial and legal advice before they attempt to unlock the record amounts of equity available at current interest rates.
Equity Release Isn’t a Last Resort
As ERC Chair David Burrowes said: “equity release should neither be a default option or last resort; it should routinely be considered, alongside potential alternatives, with both short and long-term financial goals in mind".8
In Conclusion
The £7 trillion UK housing stock has unlocked record equity wealth for older residential property owners looking to plan more secure retirements while helping their families build a future in these uncertain times.
Learn more about how equity release and other later-life lending options can be safe and a good idea for you and your family.