Economic growth is the government’s top priority, essential not only for improving living standards but also for restoring and strengthening public services. A recent report from Fairer Finance highlights a powerful yet underused lever to support this growth: the wealth stored in people’s homes. The report estimates that unlocking this housing wealth could contribute as much as £21 billion to the economy.
While much has been said about mobilising pension assets for more productive use, there has been far less focus on housing wealth, despite it exceeding pension savings in value. Making it easier for people to release equity from their homes should be a central pillar of the UK’s growth strategy.
Releasing housing equity has the potential to boost consumer spending and channel assets into productive purposes. For example, just before this event, TrustMark (which I chair) and the Equity Release Council hosted a roundtable on using property wealth to support construction, renovation, and energy efficiency upgrades in our ageing housing stock, initiatives that create skilled jobs and help advance the UK’s net-zero goals.
However, as the Fairer Finance report outlines, significant barriers remain in the later life lending market. One key recommendation is for the government and regulators to normalise the use of housing wealth as a means to sustain living standards in later life. Another is to develop dashboards that offer consumers a clearer view of their financial options. And crucially, we must increase the supply of attractive retirement properties in the communities people want to live in for those who want to ‘downsize’ – or rather to ‘right size’.
