The group’s Equity Release Market Report for Q1 2010 shows that the amount of housing wealth released through equity release schemes was 18% higher than the £183.1m in the same period of 2009.

It found that money is increasingly being used to help or treat family and friends, with more than a third of retired homeowners taking cash to help family compared to just 19% in 2009. Helping the family was the second most popular use of the cash released.

Total sales of plans climbed 19% to 5600 in the three months up from 4703 in 2009 with drawdown plans – which enable customers to take cash when it is needed rather than all at once as a single lump sum – making up 68% of sales compared with 57% last year.

Dean Mirfin, business development director at Key Retirement Solutions, said: “Despite falls in property values over the past couple of years, many find that they can comfortably raise the amounts they need from the current wealth tied up in their homes.”