The number of equity release enquiries from borrowers looking to make home improvements has more than doubled in the first five months of 2021 compared to the same period last year, according to analysis by Legal & General.

The trend began in August 2020 when the numbers of older borrowers looking to renovate their homes shot up and it has been one of the main reasons cited for taking out a lifetime mortgage ever since.

Recent research for The Good Home Inquiry commissioned by The Centre for Aging Better found that 63% of older home owners in England see home renovations as a priority in the next two years. 

However, half of those aged 50-70 said the main reason they would not be able to carry out all the renovations they want is because they cannot afford it.

Some parents and grandparents have been releasing money to support younger borrowers with deposits to help them to buy during the stamp duty holiday, while others have been providing more regular support to loved ones due to loss of income during the pandemic.

Legal & General Financial Advice chief executive Sara McLeish says: “Over the past year we have spent more time in our homes than ever before, which has led to a rise in home improvements to make our homes as comfortable, enjoyable and functional as possible. 

“As well as cosmetic improvements, as we get older it’s important our homes adapt as our needs change and renovations can be vital in improving accessibility. 

“Sadly, many people are not able to undertake this vital work because they cannot afford it. 

“Unlocking equity from the home is one possible solution for those who need extra money to make much needed improvements.”

McLeish adds: “We know that the Bank of Family has been lending money for decades for things like house deposits but, during the pandemic, the older generation has been relied upon as a vital source of financial support. 

“Our data shows there has been a significant rise in the number of older family members looking to use equity release to gift funds to their younger relatives, a trend that we expect to become more commonplace.

“Giving money to a family member can be hugely rewarding and can often make good financial sense, but the key is not to lose sight of our own longer-term plans. 

There is a risk that people could be underestimating what they need to fund a comfortable retirement and, therefore, it is important to gift sensibly. “This includes thinking about our own ambitions for our lifestyle in later life as we cautiously begin the transition back into our normal way of living.”