The number of homeowners applying for an equity release loan with the purpose of gifting to family members or friends has increased by 9% on last year, new research by Canada Life has indicated.

The firm’s findings revealed that 22% of its applications were cited as being used for gifting in H1 2025, compared to 13% of applicants over the same period in 2024.

Canada Life highlighted that its research had come amid steady year-on-year growth within the UK market, as recently evidenced by the Equity Release Council, which reported a 10% increase in total lending from Q2 2024 compared to Q2 2025.

The group also noted the context of the Government’s forthcoming inheritance tax reforms, that are to bring pensions within scope from April 2027.

“We’re seeing more people turn to equity release not just for one-off expenses or big-ticket projects like home improvements or paying off an existing mortgage, but increasingly as an estate planning tool,” commented home finance proposition development manager at Canada Life, Sadna Zaman.

“With the Government recently confirming its intention to bring unused pension funds into the scope of inheritance tax from April 2027, we anticipate that even more individuals will be turning to equity release as a way to support family members through gifting, while also potentially reducing their future inheritance tax liabilities. It’s clear that many want to see their loved ones enjoy the benefits of their support now.”

Within its latest research, Canada Life also reported a 7% increase in lifetime mortgage applications being cited for day-to-day living costs, which climbed from 20% in 2024 to 27% in 2025.

The findings also showed there was a 12% rise for emergency funds usage, which jumped to 21% from 9% in the same period last year.

“Increasing numbers of homeowners citing day-to-day-living costs and emergency funds as the reasons for their application signals that the cost of living in retirement is becoming more challenging,” Zaman added.

“With many current and future retirees predicted to lack sufficient pension funds to support them in retirement, our figures underscore the role that property wealth can play as a core pillar of financial planning in later life – whether to cover everyday expenses, emergency reserves, or to fund home renovations and experiences that improve quality of life.”

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