59% of Equity Release Plans Used For Home & Garden Improvements
New research has revealed the top reason UK pensioners are using equity release for is home & garden improvements.
The most popular reasons for home improvements include: new bathrooms, kitchens & conservatories; general decoration; and maintenance. When it came to garden improvements further analysis showed most pensioners are funding garden improvements in a bid to make their gardens more manageable going into their retirement years.
This finding is not much of a shock; home improvement stores have long-since recognized the demand in pensioners preparing for retirement and ensuring their home and garden improvements are completed to allow a more comfortable retirement. However, it is the increased popularity of equity release as a means to fund the home improvements that is on the up.
The research, carried out by Key Retirement Solutions, revealed home & garden improvements as the top reason for taking out an equity release plan, with 59% of new equity release plans in the 2nd quarter of 2009 being used for this reason – up 3%. They estimate pensioners this year alone will release a huge £540 million to fund improvements to their home and gardens.
Dean Mirfin, Key Retirement Solutions group director, said: “Pensioners play a huge part in the UK economy and as more and more look to maintain and improve their homes and gardens equity release is proving to be an ideal source of funding. Those retailers who recognise the importance that pensioners’ play will no doubt benefit now and in the future from the wealth that they hold and their strong desire to look after and maintain their homes.”
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