The number of our customers using equity release to purchase homes rose by a massive 196% in the first half of 2021, compared to the same period last year.
The massive jump can most likely be attributed to the large number of people who decided to take advantage of the Stamp Duty holiday that partially ended in June.
Continue reading, below, to find out more about our latest findings.
Boomtime for the Bank of Mum and Dad
Our data for the first half of 2021 also highlighted the influence that Covid-19 continued to have on consumer behaviour during the period.
With many young people facing a drop in earnings or unemployment due to lockdown, we found that more of our customers had chosen equity release as a way of gifting to their children - which was up 38% YOY.
But of course, that wasn’t the only reason parents wanted to help their children - we also found that many were opting for equity release in order to help their offspring move up the property ladder or get on it for the first time.
In fact, the Bank of Mum and Dad seemed to be busier than ever as confirmed by our recent study which found that 75% of parents continue to provide financial support for their children even after they had flown the nest.
Whilst it seems unlikely that the huge increase in property purchases will continue now that the Stamp Duty holiday has ended, parents supporting their children financially through a ‘living legacy’ remains a staple use of equity release.
Staying close to home
With people spending more time at home during lockdown, money spent on home improvements increased sharply to 39%.
But more time at home equally meant a drop in holiday spend, which fell 43% due to uncertainty about travelling abroad.
With overseas holidays ruled out, the ‘staycation’ market was back in vogue with mobile home or caravan purchases noting a significant rise of 39%.
With other priorities to focus on, there were decreases in those using funds for new cars - down by 34%, while spend on emergency funds and repaying of debts were also down by 44% and 27% respectively.
Digital transformation
We also saw a significant rise in digital confidence among our web users, with a massive YOY shift to mobile devices, increasing by 67% YOY.
This was a trend that encouragingly continued to grow across both Q1 and Q2 with 7% of customers now preferring to use a combination of telephone and video, compared with just 1% during the same period last year.
As digital innovators, we are always looking for new ways to support the needs and demands of our customers.
We were already ahead of the curve in terms of digital transformation last year and as we continue to innovate to bring to market new, efficient and informative solutions we are looking forward to bringing our clients along on our journey.
To find out more about how equity release can provide financial security in retirement, get in touch with the Equity Release Supermarket team on freephone 0800 802 1051 or email [email protected].
