The study showed the average borrower released £56,045 last year, a 7% increase on 2012’s £52,268 which in itself was an increase of almost 7% on 2011.
Dean Mirfin, group director at Key Retirement Solutions, said: “Confidence in using equity release and property wealth as part of retirement planning has grown substantially as demonstrated by the rise in average amounts released.
“That has been driven by the market’s focus on developing products which are specifically designed to provide solutions to issues retired homeowners are facing including the interest-only problems that many are dealing with.”
Mirfin said the strength of the property market has also highlighted the wealth many people have in their homes and how it can be used to tackle issues with retirement income as the wider economic recovery boosts confidence and optimism.
Across the country nine out of 12 regions saw growth in the total number of plans sold with Northern Ireland seeing growth of 54% and Scotland recording a rise of 35%. The North of England saw a fall of 8% but the declines in the South East and Yorkshire & Humberside were marginal.
Home and garden improvements remained the most popular use of funds – 58% of people used some or all of their cash for those purposes.
But there was a rise in customers using some or all of the money to clear mortgages from 18% in 2012 to 21% last year.
