Equity release popular with female homeowners

Posted 24/08/2009

An increasing number of single homeowners are opting for equity release, according to a new survey by the Equity Release Solicitors Alliance (ERSA).

The study shows that so far this year, some 39 per cent of single people have released equity from their homes, compared with 28 per cent in 2005.

Over the same four-year period, the number of couples choosing this course of action has fallen from 72 per cent to 61 per cent.

The research also shows that equity release is particularly popular with women, since female homeowners make up the majority of singletons taking up this option.

Of the single people who have released equity from their homes this year, 64 per cent were female and 36 per cent were male. This gender split has remained broadly the same since 2005.

Claire Barker, chairman of ERSA, said it may be that single homeowners are using equity release to make their money stretch further, since the basic state pension for a single person is currently £95.25 per week.

Because many women take time out from work to look after children or care for elderly relatives, they are often not entitled to the full state pension, which may explain why they are turning to equity release in greater numbers than men.