The firm found that between 2018 and 2021, there was a 500 per cent increase in the proportion of business coming from those with higher valued properties, with a 60 per cent jump between 2020 and 2021 alone.
Looking at new plans agreed by property value, the average value of properties within the top 10 per cent of its cases had jumped from £897,000 in 2018 to £1.78m last year. The amounts being borrowed by these clients also jumped sharply, by 74 per cent over the same period, reaching £507,621.
Across the Pure Retirement business as a whole, the average house value jumped 37 per cent over the period, peaking at £404,000. The firm noted that this is significantly above the UK average property value, which suggests that increasing numbers of affluent people are turning to equity release in order to boost their finances in retirement.
Equity release demographic changes
Paul Carter, CEO of Pure Retirement, said that the results showed the “changing demographic” of equity release borrowers.
He said: “It’s gratifying to see increasingly diverse and more affluent applicants looking at equity release. We’re proud to be offering the market’s largest intermediary sales team to support our adviser network in a retirement planning landscape that encompasses an incredibly varied customer base.”
Earlier this year, Pure Retirement expanded its intermediary sales team with former business development manager (BDM) for the central region Anna Thompson being promoted to sales operations manager. Meanwhile in July, the firm stated that it would offer select borrowers the option to secure a free Energy Performance Certificate (EPC) post-completion.
