Half of UK households (51%) will require housing wealth to support their spending needs in later life and retirement, according to a new report by Fairer Finance.

Forecasts from the independent consumer group have suggested this would unlock £23bn, in today’s prices, each by 2024.

Fairer Finance also suggested that this shift could deliver a £21bn boost to the UK economy each year.

The group’s report, which was in partnership with the Equity Release Council, is titled How can housing wealth bridge the later life funding gap? and has also called for urgent action to break down barriers in the later life lending market.

Fairer Finance has urged both the Government and the Financial Conduct Authority (FCA) to help older homeowners access the equity in their homes and to integrate housing wealth into mainstream retirement planning alongside pensions.

Managing director at Fairer Finance, James Daley, commented: “It’s an inevitability that more people will need to rely on their housing wealth in retirement – and our new research shows the scale of the problem as well as the opportunity.

“The combination of smaller pensions, increased longevity and rising care costs threaten to create a perfect storm which will leave millions of people unable to maintain their living standards in later life.”

Daley also suggested that with around 75% of the population owning a property as they reach retirement, many people are sitting on a “significant store of wealth”.

“As things stand, there are a number of social, economic and regulatory barriers which stop housing being part of the mainstream retirement planning conversation,” he added.

“For those who want to downsize, there is a lack of suitable and desirable retirement housing. Whilst when it comes to borrowing in later life, the silos in regulated advice markets mean many people are not being presented with all their options. If we’re to head off a later life funding crisis, policymakers need to start taking action to bring down these barriers now.”

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