The number of people releasing equity in order to purchase a new home has begun declining despite its steady rise, according to data collected by Key.
The data shows that the number of people who released equity on their property in order to make a home purchase rose from 336 in 2017, to 408 in 2018.
However, in Q1 2019 this figure was recorded at 43, a sharp decline on the 107 seen in Q4 2018.
The firm attributes the recent decline to the current economic uncertainty.
Key chief executive Will Hale comments: “Over the last few years, we have seen growing numbers of people using equity release to purchase a property.
“This might be to buy their dream home by the sea or on a more practical note, move into a property which is better suited to later life such as a bungalow or even to move closer to families.
“While a five bed detached property in Bury might be gorgeous, it may have less appeal in later life if your family are all based in London and the money you raise from a sale would buy little more than a small flat in the south-east unless you are able to raise more finance.”