Lifetime mortgage customers continue to use their property’s value to help financially support their families and make changes to their homes, data from Legal & General Home Finance (LGHF) reveals.

The latest data shows that in 11% of drawdowns, Legal & General customers use the value hidden in their homes to help family members meet financial goals.

With Land Registry data showing that the average house price for a first-time buyer stood at £245,522 toward the end of last year, Legal & General says that financial gifts “remain crucial” to help new buyers meet the cost of a deposit.

It reveals that using equity to support family members is likely to remain consistent during 2023.

Home improvements in 53% of applications remain the most common reason for drawing down funds.

With the market still challenging, many homeowners may be considering improving rather than moving.

However, the type of home improvements people are making could be changing. Last year, Legal & General’s Equity Economy research found that 13% of those surveyed had accessed property wealth to finance energy efficiency improvements, with insulation ranking as the most popular improvement in this group.

LGHF chief executive Craig Brown says: “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.”