The number of Britons looking to release money from their property to fund their retirement has risen to 61%, according to a report from the Equity Release Council.

This figure has risen since 2021, when 57% of those surveyed were considering equity release.

Three in four (75%) of homeowners below the age of 55 said they were open to releasing equity from their property in later life.

According to the ERC’s Home Advantage survey of 5,000 UK adults, the biggest drivers for looking to prop up retirement savings via equity release were care-related costs (17%) and boosting pension income (16%).

Supporting the financial wellbeing of younger family members was also an important priority. Nearly one in seven (14%) surveyed over the age of 55 were interested in ‘giving while living’ by gifting money from their property wealth to family for a deposit towards their first home, with 13% looking to gift money to younger family to support other financial goals.

Homeowners also told the Council that they believe it is becoming more common (39%) and acceptable (39%) to have a mortgage in later life, both up from 34% in 2021.

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.

“The rise of products such as ultra long mortgages highlight the changing relationship people have with property wealth as it is increasingly being seen as an asset rather than simply bricks and mortar.  Almost half of over-55s see property wealth as a means to meeting later life needs and the younger generation is even more wedded to this approach.”

The Equity Release Council is the representative trade body for the UK equity release sector. It sets industry standards and safeguards, such as a no negative equity guarantee and the right to penalty-free repayments, enabling customers to manage their loans.

Censuswide surveyed 5,000 UK adults in June 2021 and November 2023 on behalf of the Equity Release Council.