Almost one-fifth of people who have used property to generate income have done so in order to prepare for retirement.

In a survey of more than 4,000 people, Just Group has found that one in four adults have, or are currently, using property to get extra funds.

More than a fifth (21 per cent) of those who used property to provide extra money have done so to help with home renovations, while 17 per cent have done so to supplement retirement savings.

Another 17 per cent have given money made from a property to their children, while 16 per cent have used it to make a one-off purchase and 15 per cent have used it to pay off a mortgage.

The research shows dwellers in urban areas are about twice as likely (41 per cent) to have generated income from property than those living in suburban (18 per cent) or rural locations (16 per cent).

Around four in 10 (43 per cent) people living in London and the North East (37 per cent) have used their property to generate income.

The least likely areas are Wales (15 per cent) and Northern Ireland (9 per cent).

Just Group group communications director, Stephen Lowe, said: “For many people, buying a home is a major ambition and their property will be their biggest asset.

"With longer lives and more responsibility on individuals to build up a pension, we would expect the use of property to supplement other income to increase in the coming years.

“How they do it could change significantly as the rewards and incentives change.

"Higher taxes on buying second properties and on rental income could lead to a slowdown in lettings, while more innovative and accessible equity release products could lead to more people in later life tapping into property wealth to meet their retirement aspirations.”

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