Equity release payments in the UK increased by almost £1bn in 2021, research from debt advisory firm, Henry Dannell, has found.

Between 2020 and 2021, the amount of money released in the UK climbed from £3.9bn to £4.8bn, a 24.4% annual increase equivalent to £940m.

This increase was created by the number of people choosing to release equity rising by 4.3%.

Henry Dannell’s analysis also indicated that over the same period, the average cash value for a release of equity increased by more than 19%, from £53,000 in 2020, to £63,000 last year.

Director of Henry Dannell, Geoff Garrett, said that the increased popularity of equity release schemes is down to “a number of different factors”.

“One important one is increasing life expectancy and the fact that people are staying healthy and mobile much later in their lives,” Garrett commented.

“People now want more from their retirement years than they used to – they want to travel and pursue hobbies and leisure activities like never before. But this youthful energy and aspiration costs money, the sort of money that pensions can’t often provide. 

“Furthermore, societal changes mean that children are often less reliant on parental money and inheritance for financial support, so parents are more frequently choosing to enjoy the money that would otherwise be frozen in bricks and mortar investments, determined to enjoy life for as long as possible and their children are increasingly supportive of this choice.”

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