The potential and implications of home equity release in old age

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Abstract
Studies of the implications of wealth accumulation through owner occupation have begun to focus on the inheritance of housing wealth. This paper suggests that such studies give too little emphasis to the consumption of home equity by older people. To date, the use of home equity has been relatively insignificant but this reflects the limitations of existing equity release mechanisms rather than a lack of underlying demand. The scale of equity held by older people, the potential for new mechanisms, and survey evidence relating to the attitudes of older people themselves are examined in detail. In the context of declining standards of state provision of many services many older people may choose or be forced to make use of their wealth to meet a variety of needs. This not only requires a reappraisal of the role of home ownership in providing for old age but also raises major questions in relation to standards of provision for those without access to such wealth.