The number of homeowners unlocking property wealth to gift to loved ones has risen in the past year, new research from Canada Life has revealed.
The figures show there was a 9% increase between the first half of 2024 and the same period of 2025 in the number of homeowners applying for a loan for the purpose of gifting to family members or friends.
In the first half of 2025, 22% of applications were cited as being used for gifting, compared to 13% the previous year.
This comes amid a steady year-on-year growth within the UK market, with recent figures from the Equity Release Council showing a 10% increase in total lending from the second quarter of 2024 to the second quarter of 2025.
Over the same period, Canada Life has also seen a 7% rise in lifetime mortgage applications being used for day-to-day living costs and a 12% jump in emergency funds usage.
However, home adaptations or improvements remained the leading reason for equity release in the first half of this year (43%), followed by wanting to clear an existing mortgage (27%).
Sadna Zaman, home finance proposition development manager at Canada Life, said: “With the Government recently confirming its intention to bring unused pension funds into the scope of inheritance tax from April 2027, we anticipate that even more individuals will be turning to equity release as a way to support family members through gifting, while also potentially reducing their future inheritance tax liabilities. It’s clear that many want to see their loved ones enjoy the benefits of their support now.
“Furthermore, increasing numbers of homeowners citing day-to-day-living costs and emergency funds as the reasons for their application signals that the cost of living in retirement is becoming more challenging.
“With many current and future retirees predicted to lack sufficient pension funds to support them in retirement, our figures underscore the role that property wealth can play as a core pillar of financial planning in later life – whether to cover everyday expenses, emergency reserves, or to fund home renovations and experiences that improve quality of life.”
