7 Sep 2021
The number of wards in England & Wales with an average house price of more than £1million has increased by 95% in just five years, from 23 in December 2015 to 45 December 2020, according to new analysis from Legal and General Home Finance (LGHF) 1. To meet the changing needs of people at retirement who want to use property wealth to fulfil their goals, and to provide a better solution for the rising number of property millionaires across the country, LGHF has today announced its new Premier Lifetime Mortgage, with two products developed to help customers make the most of the wealth in their homes.
LGHF’s analysis of Office for National Statistics (ONS) data demonstrates that, if property growth continues at its current rate, with house prices rising by more than 10%, up to 18 additional wards in England & Wales could be in the £1million+ category – a 40% increase2. While the majority of these areas are in London, many of the ‘new entrants’ in recent years are from outside the capital, such as Sevenoaks Kippington, in Kent; Gerrards Cross, in Buckinghamshire; and Woldingham in Tandridge, Surrey. With house price growth in London stagnating relative to the rest of the country this could see a greater number of areas outside the capital with a median local house price value of more than £1million. [Full list of areas with a median value of £1million+ in attached PDF] 3
LGHF has designed a new Premier Lifetime Mortgage offering for clients with £1million+ properties to cater for the growing interest in this area. The new offering will provide a specially designed product and additional support to advisers when dealing with higher-level loans.
Legal & General already offers an innovative range of products aimed at modern retirement planning including, Retirement Interest Only (RIO) Mortgage, Flexible Lifetime Mortgage and Optional Payment Lifetime Mortgage (OPLM).
Claire Singleton, CEO, Legal & General Home Finance: "The steady growth in house prices has come at a time when the societal need for more effective solutions at retirement is also on the rise. We know that people want to provide a living inheritance, support their family members or simply maximise their own retirement income. A greater number of people could benefit from taking advantage of their property wealth as part of their long-term plans. With more ‘property millionaires’ across the country, lifetime mortgages can be a useful tool to help you enjoy the retirement you want."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Retail Retirement’s mission is to help its customers lead longer, healthier, happier lives. We believe everyone should be able to have a ‘more colourful retirement’. The Division comprises the Group’s retirement savings and income, later life lending and care solutions businesses. In 2020, LGRR wrote £910 million of annuity premiums and issued £791 million of lifetime and retirement interest only mortgages.
*at 31 Jun 2021