In a report published by the firm this week the firm surveyed more than 2,500 consumers, finding that 24 per cent of homeowners in the South East had released equity from their homes or had considered doing so.
According to the company the research shows the money released by this equity release has put more than £7.1bn into the UK’s gross output.
Chris Knight, Chief Executive Officer, Legal & General Retirement Retail, said: “It’s no secret that lifetime mortgages have been growing in popularity in recent years, but as more and more Britons decide to access the cash tied up in their homes for retirement, no one has yet asked the question about the impact this newly unlocked equity is having on our economy.
“Our ‘Silver Spenders’ research shows that homeowners aged over 55 are boosting UK gross output by up to £7.1bn, with the benefits being felt across industries ranging from construction and manufacturing to health and social services. Not only are these older homeowners accessing equity that would otherwise have remained locked up in their properties, whether for a holiday or a home renovation, but these funds are filtering through the economy as well. That is boosting the spending power of our businesses, generating jobs and spurring economic growth across the UK.
“With longevity increasing and awareness about lifetime mortgages growing, the role of equity release and its contribution to the national economy is set to grow further. Last year saw the sector surpass £3bn and a £5bn plus market is a strong possibility by 2020. But there is an estimated £1.5 trillion of property wealth in hands of Britain’s over-55s, so there is the potential for retirees and their housing equity to play a much bigger role in boosting UK GDP in years to come.”