Equity release lending rose by 24% year-on-year in the first half of 2016, Key Retirement’s Half Year Equity Release Market Monitor has revealed.
In the first half of 2016 £934m was released, up from £753m in 2015.
The number of equity release plans rose by 11% to 12,246 and typical property values rose by 16% to £307,021.
Dean Mirfin, technical director at Key Retirement, said: “The equity release market is hotting up, with more mainstream lenders entering the market and more asset-rich homeowners looking to unlock the wealth from their homes in the face of declining annuity rates and continued low interest rates, which hit pensioners the hardest.
“Pensioners who are now considering their home as part of their retirement portfolio are benefitting by £76,300 each, this by far outstrips the size of the average pension pot and provides an important income boost for pensioners who need to secure more funds for their retirement.”
Across the country eight out of 12 regions saw growth in the value of property wealth released with East Anglia recording an 80% rise, Wales 57% and the South East a 33% increase.
Eight out of 12 regions recorded rises in plan sales, East Anglia and Wales saw a 39% rise and the East Midlands a 22% increase.