ONE in four homeowners in the North West are open to releasing equity from their homes for their retirement, a new survey has found.

Home refurbishments and repairs, holidays, medical costs are among the most popular ways for so-called silver spenders to spend cash unlocked from their properties, says financial services company Legal & General.

A survey of more than 2,500 consumers found that for every £1 housing wealth freed up by equity release, £2.34 is generated for the economy.

The £3 billion generated last year looks set to boost the UK economy by more than £7 billion, especially manufacturing, construction, and health and social work.

Legal & General says lifetime mortgages - a type of equity release - have seen a surge in popularity among Britain’s older homeowners in recent years. They are becoming the fastest growing sector of the mortgage market and sales tripled between 2013 and 2017, rising to more than £3 billion in 2017, said the Equity Release Council.

“It’s no secret that lifetime mortgages have been growing in popularity in recent years,” said Chris Knight, chief executive officer of Legal & General Retirement Retail, “but as more and more Britons decide to access the cash tied up in their homes for retirement, no one has yet asked the question about the impact this newly unlocked equity is having on our economy.

“Our ‘Silver Spenders’ research shows homeowners aged over 55 are boosting UK gross output by up to £7.1 billion, with the benefits being felt across industries ranging from construction and manufacturing to health and social services.

"Not only are these older homeowners accessing equity that would otherwise have remained locked up in their properties, whether for a holiday or a home renovation, but these funds are filtering through the economy as well. That is boosting the spending power of our businesses, generating jobs and spurring economic growth across the UK.”