Jim Boyd

Three in five UK homeowners look to property wealth to support retirement

More than three in five (61%) UK homeowners are considering releasing money from their property in later life to meet various financial needs, according to the Equity Release Council. This figure has increased from 57% in 2021, indicating a growing reliance on property wealth.

The Council’s Home Advantage study, which surveyed 5,000 UK adults, shows that 39% of homeowners believe it is becoming more common and acceptable to have a mortgage in later life, up from 34% in 2021. This shift is particularly evident among younger homeowners, with 75% of those under 55 open to using property wealth in retirement.

Among homeowners aged 55 and over, the primary motivations for releasing property equity include meeting care-related costs (17%), boosting retirement income (16%), and funding travel plans (15%). Additionally, many older homeowners are interested in supporting younger family members financially, with 14% looking to help with home deposits and 13% aiming to support other financial goals.

Jim Boyd, CEO of the Equity Release Council, said: “In an ideal world, most people would retire with a mortgage-free home and a substantial pension, but that is not the reality of modern Britain. People are choosing products such as ultra-long mortgages out of necessity as the lower repayments allow them to purchase a home, save into their pensions, and finance their day-to-day living expenses.”

Mark Gregory, founder and CEO of Equity Release Supermarket, added: “Many factors dictate why people opt for equity release and changes in consumer behaviour tend to be reflective of the current market competitiveness. Changing attitudes and acceptance towards borrowing into retirement has created ongoing demand for these types of products.”