Nearly double the number of new equity release plans were taken out by single women as single men in the first half of this year, as increasing numbers of lone homeowners use their homes to supplement their retirement income.

Market data for the first half of 2019, published by the Equity Release Council, shows that single plans accounted for 41 per cent of new drawdown plans and 45 per cent of new lump sum plans.

The remainder were taken out by joint borrowers.

Of the single plans, 14 per cent of drawdown arrangements were taken by men and 27 per cent by women, while 18 per cent of lump sums were taken by men and 27 per cent by women.

Out of retirees in the lowest income groups, 45 per cent making use of equity releases were single women, 38 per cent couples and 17 per cent single men.

According to the ONS, the number of over-65s living alone has increased by 15 per cent in the last decade, from 3.4 million in 2008 to 3.9 million in 2018.

As a result, the percentage of single-person UK households that are aged 65 or over has increased from 45 per cent to 48 per cent over the same period.

The Equity Release Council estimates that there will be more than 4 million over-65s living alone by 2020, with this age group making up half of single-person households by 2022 as life expectancies and the rate of divorce in later life increases.

While the loss of a partner can account for a substantial proportion of these single person-households, the growing number of over-65s living alone might also be attributed to the rise in divorce among couples in later life, says the Equity Release Council.

Since 1999, the average age of divorce has increased by 5.5 years for both men (46 years old) and women (44 years old), according to the ONS.

Equity Release Council chief executive officer, Jim Boyd, said that the rise of the “silver splitters” was becoming a striking feature of ageing-Britain, and was leading to increases in the number of people living alone in later life.

“Living alone can be costly as sole incomes are expected to stretch just as far to cover many of the day-to-day household bills,” he said.

“Added to this pressure is the fact that many of the retirees of today are set to face record long retirements as life expectancies increase, putting even greater demand on their pension pots as they’re expected to stretch further.

“In response to these trends, we’re seeing an increasing number of homeowners that live alone turning to equity release to supplement retirement income and help meet both day-to-day and long-term financial priorities.”

Just Group group communications director, Stephen Lowe, said that the Council has provided evidence that equity release business from single pensioners is set to keep on rising.

“Given the gap in pension provision between men and women, we foresee more growth in equity release advice driven by women seeking to supplement their incomes in later life, enabling them to stay in their homes and communities,” he said.

“It reinforces the point that everybody heading into retirement – couples as well as singles – need to think about the ‘what ifs’ of later life and make plans that keep sufficient income flowing for as long as they need it."

The equity market saw £3.94bn released from properties over the course of 2018.

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