Key Retirement Solutions has released analysis of the equity release market in the UK. The analysis for the first time looks at usage trends throughout the UK based on region, property value and age.
The North and London are the most generous regions as 16% give some of the cash released from their homes via equity release as a gift to their families.
People in the North are also most likely to spend the cash released from their home on improving them 69%, followed by the North West 67% and Yorkshire & Humberside 66%.
It appears those in the North are also more focussed on their lifestyles, as nearly two thirds (58%) spend the money released from their home on holidays.
Northern Ireland have the greatest focus on debt repayment and by far the lowest when it comes to holidays, only 18% said they would use the cash to go on holidays yet well over half (68%) repay their outstanding debts or mortgage.
For those people with a property value of less than £200,000 home improvement is their biggest priority (63%) which comes before repaying debts or mortgages (57%).
Looking at all property values those which stand at less than £200,000 are more likely (40%) to spend the cash on a holiday than any other value of property.
As can be expected those with a property value of more than £750,000 are the most generous, as a quarter (25%) give some of the cash as a gift to their family.
As consumers get older they are more likely to give some of the money they have received from equity release as a gift to their family (19% of those over 75 compared to just 6% of those aged 55-59).
The younger the person who releases equity from their home the more likely they are to pay off outstanding debts or their mortgage, 69% of those aged 60-64 do so followed by 67% of those aged 55-59.
Dean Mirfin, Key Retirement Solutions Business Development Director, said: "It is interesting to see how the uses of equity release in many ways are common across the regions of the country, however it is equally interesting to note some of the notable differences when we look more closely at the results. The results do bear out the fact that there are significant changes within some regions, and as anticipated differences occur as a result of age and property value.
"This analysis helps to further ensure that product design and advice continues to fulfil the needs of those looking to release equity from their homes and to cater for needs over time. The most popular reasons at all ages do not come as a great surprise, being home improvement, repaying debt and holidays. Whilst few appear to release equity for an extra monthly income, many incomes are directly improved by the repayment of debt.
"The figures continue to show, that for the many thousands in or approaching retirement, the need and desire to release equity is targeted at those outcomes which will have a dramatic, positive, effect on their standard of living."
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