Research conducted by Pure Retirement indicates a notable increase in the average property value among new lifetime mortgage customers in the third quarter of 2024.
- The average property value for new lifetime mortgage customers has reached £423,434, marking a 4% rise from the same quarter last year.
- Compared to the second quarter of this year, there is a 3.2% increase in property values among these customers.
- The data also reveals that property values for Pure Retirement’s customers are rising almost five times faster than the national average.
- The majority of these new lifetime mortgage customers own properties valued between £250,000 and £399,999.
Pure Retirement has published research revealing that new lifetime mortgage customers are experiencing a significant rise in average property values. As of the third quarter of 2024, the average property value hit £423,434, demonstrating a 4% increase from the same quarter in the previous year. This trend underscores the changing dynamics within the property market, particularly in terms of mortgage products.
In the sequential analysis, there has been a 3.2% rise from the second quarter of 2024, when the average stood at £409,811. This trajectory highlights an accelerated property valuation trend among new lifetime mortgage customers compared to broader national statistics.
National data from Nationwide’s house price index indicates an annual increase of 2.5% and a quarterly rise of 0.7%. In stark contrast, Pure Retirement’s average customer property values have surged nearly five times quicker over the last quarter. This disparity reflects a unique shift within the segment of lifetime mortgage products.
The research further identifies that 37% of new lifetime mortgage cases involve properties valued between £250,000 and £399,999. This statistic highlights the significant proportion of customers within this property value bracket, despite increasing average values.
Interestingly, the proportion of properties valued at over £1 million within the new lifetime mortgage cases remains stable at approximately 4%. This indicates that while there is significant growth in average values, the upper echelon property segment maintains its position without substantial fluctuation.
In summary, the data from Pure Retirement accentuates the rapid increase in property values among new lifetime mortgage customers, showcasing a trend not mirrored in the broader market.
