The Hidden Wealth Story Playing Out Across the Cotswolds

The Hidden Wealth Story Playing Out Across the Cotswolds

 by Guy Olsen, The Equity Release Partnership

Most of us know at least one person who feels entirely at home in their house, but not quite as comfortable when they check their bank balance. With that in mind, I thought it might be useful this month to share some insights from a recent report by one of the biggest later life lenders. It offers a clear picture of how people over 55 are using the value tied up in their homes to shape their lives, support their families and keep pace with rising living costs.

You don’t need to know anything about our field of expertise to find this interesting, because the trends highlighted in the report affect everyday families right across the Cotswolds.

The biggest headline is simple. More people are beginning to use the wealth in their homes to solve practical problems, improve their quality of life or give a helping hand to loved ones. And many of the ways they are doing this might surprise you.

One of the strongest shifts is around family support. One of the fastest-growing uses of later life borrowing is gifting. Not the extravagant kind, but the practical, steady support that keeps families moving forward. Parents and grandparents are stepping in to help with house deposits, to contribute towards school or university costs, or to support someone through major life disruptions like divorce or redundancy.

Interestingly, the report shows that women are far more likely than men to use their property wealth in this way. It reflects something many of us already see in our own circles, that older women often act as the emotional and financial anchor for their wider family. And for Cotswold business owners, estate planners, advisers and anyone working with multi-generational households, this is a trend worth keeping an eye on. Local property values tend to outperform the national average, which means even modest gifts can meaningfully change what younger family members can achieve.

Another noticeable shift is that more couples are planning ahead together. The rise in joint applications suggests couples are thinking more carefully about their long-term future and taking steps to build more security, flexibility and comfort as they move into later life. Many are using the opportunity to clear an existing mortgage before retirement. Others want to carry out home improvements, particularly to make their home easier to live in as they get older. Some are simply trying to build a financial buffer against rising living costs, or to make sure the surviving partner will be secure if one of them passes away.

An increasing number of couples are also choosing lump sums rather than the older style drawdown plans, which points to a desire for simplicity and certainty. For local professionals working with older homeowners, whether accountants, mortgage brokers, solicitors, will writers or care providers, it is a sign that people are planning earlier, asking more detailed questions and looking for advice that takes their whole situation into account.

There is, however, a slightly sobering point in the report. Nearly 40 percent of UK adults are expected to struggle to meet even their basic retirement needs. And 82 percent of over 55s planning to retire have never considered accessing the wealth locked in their home. Put simply, a lot of people who could be more comfortable simply don’t know that these options exist. Given how many Cotswold homeowners are what you might call “asset heavy but income light,” this could just as easily apply to your clients, your neighbours or even your own family.

This matters because the Cotswolds has a higher than average proportion of older homeowners. Many bought their homes decades ago and have benefited from rising property values, but their income may not stretch far enough today. That mismatch creates pressure. People want to stay in their homes, enjoy life, travel occasionally, help their families and feel secure, but pensions and savings are often not enough to support that lifestyle on their own.

Whether you run a business that serves older clients, or you have family members making important decisions about later life, understanding this shift gives you a clearer context for the conversations you may already be having.

And if you ever need a steer, or you come across someone who is simply curious about how their home might help them enjoy life a little more, offer support to family or take some pressure off day-to-day finances, I’m always happy to have a friendly, no-pressure chat. The market is evolving, and with the right guidance homeowners in later life are discovering choices they didn’t realise they had.

About the Author

Guy Olson – Managing Partner, The Equity Release Partnership

Guy is a later life financial specialist with a background in equity release and wealth planning. He works closely with solicitors, accountants, care providers and financial advisers to help clients make smart, practical decisions about their finances, whether that’s funding care, supporting family or navigating the financial challenges of later life. Guy is a member of the Society of Later Life Advisers (SOLLA) and the Equity Release Council, and brings a clear, down to earth approach to topics that can otherwise feel daunting.

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Tel: 0333 050 9944