The pandemic finally feels like it’s permanently in the rear-view mirror.
Reading about the next novel coronavirus and the fears of yet another lockdown was becoming as boring as the lockdown itself.
Yes, I’m incredibly pleased that all the lockdowns are over and we have all had some consistent time together. However, on reflection, some interesting benefits derived from those lockdowns, which I think are worth some casual analysis.
Flexible working is one thing most people appear to have enjoyed and many companies seem to have retained as we move through the new norm.
Many remodelled their kitchen or built an extension
Add to this a greater respect for employees’ health and wellbeing while at work, a reduction in the number of unnecessary trips (also good for climate change) and the fact millions got to spend more time with their family — and some people, I’m sure, would say that the lockdowns were no bad thing.
Tangible benefits
On top of these rather vague and a little vibe-based ‘pandemic positives’, there were some tangible benefits that thousands of people took advantage of — specifically homeowners across the UK.
One of the biggest things many of us suddenly had on our hands during Covid was time. The time we had all spent commuting and working late at the office, or often simply wasting, was suddenly stacking up.
There is something almost poetic in releasing the locked-up money in one’s home to then reinvest it straight back into the property
I, for one, didn’t know what to do with all my extra time for a lot of the lockdowns, and my watch seemed to be persistently lying to me — how can there possibly be that much time left in the day?
But others used the time wisely, with many finally grasping the moment to make some long-overdue improvements to their home.
According to data released by Yahoo Finance, in 2020, the peak of the pandemic, “British consumers spent £110.3bn on home improvements, an increase of nearly 30% year on year”. Suddenly, trapped at home, millions of us started to pay a little more attention to that peeling wallpaper, this dampening conservatory or those irritating little things we had put off for so long.
For many thousands of individuals it was equity release that enabled those big-ticket items to become a reality
Digging deeper, the lockdown era saw sales of things such as gardening tools shoot up by nearly 50% annually, paint was purchased at a similarly increasing rate and 31.4% more people bought building materials.
Essentially, the entire country was pulling on overalls and planning to improve the walls around them — and why not, given we were set to stare at those walls for so long?
But how did people pay for all this? Well, a lick of paint here and a few new shovels and spades there won’t break the bank, but many people went further and remodelled their kitchen, added an extension and much more; which can, of course, be costly.
And this is where equity release comes in. There is something almost poetic in releasing the locked-up money in one’s home to then reinvest that cash straight back into the property, thus increasing its value and adding to its comfort. And this is what thousands of people around the country have been doing ever since the first lockdown.
We should be pleased that our products can deliver the financial freedom people need to make such changes
In fact, according to recent research from a leading industry participant, home improvement has made its way to the very top of the reasons why people access their equity. Some 29.7% of borrowers who released equity from their home last year did so to renovate their property, claims a Responsible Life study.
Perfect opportunity
Ultimately, people are smart. When the pandemic hit, homeowners quickly realised this could be the opportunity they needed to make that big change. Levelling up your home can be stressful, so the time and flexibility the pandemic gave many of us in our working life proved to be the perfect opportunity.
Home improvement has made its way to the very top of the reasons why people access their equity
But then financing could still be an issue for those big-ticket items and changes. However, for many thousands of individuals it is equity release that has enabled this to become a reality. We should be pleased that our products can deliver the financial freedom people need to make such changes, and be proud of the advancements the industry has made over the years.
This can be difficult when faced with what are often outdated views from certain sectors — but the customer satisfaction rates speak for themselves.
Andrea Rozario is chief commercial officer of Bower
This article featured in the June 2023 edition of MS.
If you would like to subscribe to the monthly print or digital magazine, please click here.
