According to Legal & General Home Finance figures, this could be due to the “challenging” market which means that homeowners would consider “improving rather than moving”.
However, the firm noted that the type of improvements could change.
In research carried out last year, the company said that 13 per cent of those surveyed used property wealth to carry out energy efficiency improvements, with insulation the most popular improvement.
The report added that around one in 10 customers said they would use drawdowns to help family members meet their financial goal.
It continued that as the average house price for a first-time buyer is £245,522, financial gifts remain vital to help prospective buyers build up a deposit.
Legal& General Home Finance added that using equity to support family members would “remain consistent” during this year.
‘Lifetime mortgages…a practical solution’
Craig Brown, Legal & General Home Finance’s chief executive, said: “The home is still likely to be one of the most significant financial assets many homeowners have, and it can play a key role in supporting retirement needs and goals.
“Looking ahead this year, we expect that gifting and home improvements will remain popular uses of equity release. A living inheritance can help to provide support to younger family members at a time when it’s needed most.”
He continued: “Lifetime mortgages remain a practical solution for many people looking to fund later life. A stringent financial advice process, along with robust industry standards and safeguards, ensure equity release customers are supported in their decision making.
“We make sure customers are aware that any additional drawdowns they take are at the prevailing rate which, in the current climate, may well be higher than when they originally took out a lifetime mortgage.
“We’ve put in place enhanced procedures for drawdowns to make sure our customers clearly understand the impact of their financial decisions.”
