Equity release is being used the most across all age groups for home improvements, new data from HUB Financial Solutions has revealed.

Customer data from the advisory firm found that people who may have recently started to receive their State Pension – those aged in 65 to 69 group – were the most likely to use the money for home improvements, with 66% earmarking the funds for this purpose.

More than half of all other age groups under the age of 85 also stated that at least some of the money would go back into improving their home.

Younger age groups, meanwhile, were found to be more likely to take money out of the property for cash flow reasons, whether to pay off their mortgage or other existing debts, HUB Financial Solutions suggested.

The data also showed over a third of 55-59-year olds last year used the money to clear their mortgage, while 52% paid off other debts. However, just over one in 10 of all equity release customers used the money to finance their mortgage, and only around a quarter cleared other debt.

Instead, older age groups were more likely to use the money to enhance their lifestyle or make gifts to family, with the data also revealing 45% of those aged between 75 and 79 years using the cash to go on holiday or for leisure, while 34% of the age group between 80 and 85 years giving the money as a gift to family.

HUB Financial Solutions managing director, Simon Gray, commented: “The ability to access money from property in later life can meet a huge variety of needs as this data shows. Whether our homes need a spruce up or there is a desire to clear outstanding debts, the sharp wealth stored in people’s homes has left many in a position where releasing equity can be a good option to meet their needs.

“It is clear from our data that people are using equity release for many different reasons but there are some trends that emerge in different age groups.

“For older customers who are more likely to be debt-free, the income is more likely to be spent on lifestyle activities or to make a gift to their family. For customers who are younger, equity release tends to serve a clearer financial need.”

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