New estimates by retirement income providers Retirement Advantage reveal an increase of £10bn in the potential wealth available to over-55s in the UK via equity release.
The figures, based on public data on UK property owned by over 55s and Nationwide house price figures, represent an increase of 2.6 per cent over the past year.
This compares to 1 per cent growth in 2016.
However, a slowdown in house prices in the fourth quarter of 2017 means the total value of the equity release market has fallen by £55m (0.01 per cent) compared with the third quarter of 2017, Retirement Advantage calculated.
Alice Watson, head of product and marketing at Retirement Advantage, said: "The growth in house prices over the last year is further evidence of the enormous potential property value yields when it comes to planning for retirement.
"Concerns are growing that people are finding it difficult to save enough for the retirement they want, not helped by the sluggish wage growth we have seen over the last decade.
"There is an urgent need for property to become part of the retirement equation – and these figures demonstrate the impact it could have.
"Despite the dip in house values at the end of 2017, the total potential value of UK equity release is up by nearly a fifth compared with its pre-crash peak in 2007.
"Equity release will not be suitable for everyone, but savers who think holistically and discuss property alongside other assets with their financial advisers are best placed to live the retirement they want."
emma.hughes@ft.com
