Older Scottish Homeowners Most Likely to Spend on Holidays
15 March 2019
OLDER SCOTTISH HOMEOWNERS MOST LIKELY TO SPEND ON HOLIDAYS
- Two out of five Scots who took out equity release use the cash for trips away
- Average value of property wealth released in Scotland is £53,300 with more than £138.5 million paid out a year
Older homeowners in Scotland are more likely to enjoy holidays after releasing property wealth than any other part of the UK, new data from the UK’s leading independent equity release adviser Key reveals.
Around two out of five (40%) of retired Scots are using some or all of the cash they receive from equity release plans to go on holiday making them the most likely in the UK to spend on trips away. This is higher than the UK average (33%) and significantly higher than those in East Anglia (23%).
| Region | Percentage of equity release customers spending on holidays |
| Scotland | 40% |
| Yorkshire & The Humber | 39% |
| London | 37% |
| North East | 36% |
| West Midlands | 36% |
| North West | 35% |
| Wales | 35% |
| East Midlands | 33% |
| South East | 33% |
| South West | 30% |
| East Anglia | 23% |
Average pay-outs from homes for equity release customers in Scotland last year were £53,372 with £138.56 million of property wealth released by retired homeowners, Key’s figures show.
Equity release customers using the money for holidays are funding everything from expensive ‘once in a lifetime’ trips abroad to regular trips away in the UK to breaks for them and their families, Key says.
While those in Scotland are most likely to spend money on a holiday, the most popular use of the money in Scotland is for funding home and garden improvements with 56% re-investing some or all the money in their houses so that they can stay in their homes. Around 27% used some of their cash to help out family while 24% were able to pay off credit cards or loans and 23% used the money to pay off existing mortgages.
Will Hale, CEO at Key, said: “Property wealth is making a major difference to the standard of living for retired Scots homeowners who have paid off their mortgages and it is good to see that so many are able to relax and enjoy holidays in their retirements.
“They are not just spending on themselves as more than a quarter are also helping out family and friends and of course retired Scots are not immune from debt worries or mortgage issues.
“Good independent expert advice is key to ensuring that older homeowners receive the most benefit from their property wealth and use it in the most appropriate way for them and their families.”
The table below compares Scotland with the rest of the UK
| SCOTLAND | UK | |
| TOTAL PROPERTY WEALTH RELEASED | £138.561 million | £3.600 billion |
| TOTAL PLAN SALES | 2,596 | 47,081 |
| AVERAGE PROPERTY WEALTH RELEASED | £53,372 | £76,473 |
| HOW MANY SPENT ON THE HOME | 56% | 64% |
| HOW MANY SPENT ON HOLIDAYS | 40% | 33% |
| HOW MANY SPENT ON FAMILY | 27% | 27% |
| HOW MANY PAID OFF DEBTS | 24% | 31% |
| HOW MANY PAID OFF MORTGAGES | 23% | 22% |
| HOW MANY ARE PAYING BILLS | 14% | 12% |
| HOW MANY SWITCHED FROM ANOTHER PLAN | N/A | 3% |
| HOW MANY ARE REDUCING IHT | 1% | 1% |
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting https://www.keyadvice.co.uk/equity-release/is-it-right-for-me
ENDS
Notes to Editors
* Key market data for 2018 The Monitor uses Key’s data to reflect the market as a whole. The data reflects both members and non-members of the Equity Release Council, and provides the most detailed analysis of the equity release sector. The figures reflect new customers and the equity they released rather than any ongoing withdrawals via products such as drawdown.
For more information or to request a case study, please contact:
Lee Blackwell
Director of Public Relations and Public Affairs
Key Retirement Group
07384511140
E-mail: [email protected]
Rachel Mann
Key Retirement Group
01772 508322
E-mail: [email protected]
Citigate Dewe Rogerson
Katie Ormrod
0207 025 6440
E-mail: [email protected]
About Key
Part of Key Retirement Group, Key is the UK’s largest independent equity release broker – committed to high levels of customer service and the belief that good advice is key to ensuring people make smart sustainable choices around how they use their housing equity.
With over 60 industry and consumer awards under their belt, the Key team offer advice on equity release, later life mortgages and retirement interest-only products. The company also provides support with estate planning including wills and lasting power of attorneys.
Key is committed to putting customers at the heart of what it does and has a score of 9.8 from over 14,100 scores on the independent review site, Trustpilot.
Based in Preston, Key is committed to being independent, transparent and straightforward.