£540 Million of equity release will be spent on home and garden improvements this year[1]
UK pensioners are helping the economy throughout this difficult period by continuing to spend money on looking after their homes and gardens, new research reveals. The research from Key Retirement Solutions, the UK’s leading equity release specialist, shows that pensioners releasing equity from their homes rank home and garden improvement as the top reason for taking out a plan. It is estimated that a whopping £540 million will be raised this year alone by pensioners to fund expenditure on their homes and gardens[1].
Key’s latest review of the equity release market shows that in the 2nd quarter of 2009 59% of those releasing equity did so to spend money on their home and gardens, up from 56% for the same period last year. Popular reasons include: new bathrooms and kitchens, conservatories and general decoration and maintenance. Also many look to use the value tied up in their homes to fund garden projects, typically aimed at making the garden more manageable.
DIY stores have for a long time recognised the importance of this growing group of the population who are prepared to spend in their retirement to make sure that they continue to live in a home which they admire and enjoy. A number of DIY chains recognise the importance of the purchasing power of this age group and offer discount cards aimed at the over 60′s. One of the more flexible is Focus DIY who have their Privilege discount card which offers a 10% discount, and this can be used every day of the week.
Dean Mirfin, Key Retirement Solutions Group Director, said: “Pensioners play a huge part in the UK economy and as more and more look to maintain and improve their homes and gardens equity release is proving to be an ideal source of funding. Those retailers who recognise the importance that pensioners’ play will no doubt benefit now and in the future from the wealth that they hold and their strong desire to look after and maintain their homes.”
Martin Lewis, Senior Marketing Manager at Focus DIY, commented: “The unrestricted[2] use of Focus DIY’s Privilege discount card makes it a real winner with over 60s in comparison to other DIY discount cards. In fact, recent research into the buying power of the over 60′s identified that FOCUS is now the main port of call for all DIY and gardening purchases.”
For anyone looking to release equity from their home to help ease the financial burden in retirement, key’s independent guide to equity release is the best place to start. This can be obtained by calling 0800 531 6010 or visiting our website https://www.keyrs.co.uk/free-guide where the guide can be downloaded.
Note to Editors
1. Key Retirement Solutions (KRS) arrange approximately 20% of all equity release business in the UK. When applying the value of equity release through KRS to fund home and garden improvements to the whole market this equates to £539,722,669.
2. The Focus Privilege card can be used every day of the week and gives those aged 60 and over a 10% discount. The discount does not apply to lawnmowers, gift vouchers or concessions. Further details can be found at www.focusdiy.co.uk or by calling free on 0800 436 436.
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