The report said that total number of equity release plans purchased in the first half of 2012 hit 9,288, a rise of over 10% from the figure of 8,387 posted last year.
The total value released rose from £386m to £446m over the same period, with improvements to homes and gardens remaining the most popular reason to release equity from a property.
Key said that 58% of equity release customers used the wealth in their home for this purpose during the first half of the year.
Other popular uses of equity release include funding holidays (30%), clearing outstanding mortgages (18%) and paying household bills (16%).
The number of plans sold in most areas of the country grew, with only London and the West Midlands posting falls. However, the total value released using equity release in London grew rapidly from £50m last year to £73m in 2012.
The report also highlighted that nearly a third of pensioners used their wealth to provide financial assistance to their families during the first half of the year, up from 23% in the same period of 2011.
Dean Mirfin, group director at Key Retirement Solutions, commented: “Retired homeowners are putting families first as the recession continues to squeeze finances across generations.
“Helping out family is a powerful motivation for elderly homeowners and it is striking that they feel financially secure enough to help families before themselves and are under less financial pressure from their own debt.
“The equity release market is firmly back on the growth track with total values released up 15% in the first half of the year while sales of plans are also well ahead of 2011. The ongoing innovation in the market is driving growth with drawdown taking a crucial role.”
