The global equity release market is also set to grow significantly according to the responses of nearly 100 lenders in 13 countries including the USA, Canada, Australia, New Zealand, Germany, Ireland and Spain.
The report said the global sector could more than treble over the next 10 years from the $15bn (£10bn) currently released annually to more than $50bn (£36bn) by 2031.
It found that the most common sources of financing for equity release mortgages were banks, insurance companies and securitisations.
All equity release products in the UK were shown to have been sold through lifetime mortgages with fixed rates. Just over half were borrowed using drawdowns with the rest provided through lump sums.
A lack of customer awareness was named as the biggest barrier to equity release growth in the UK, similar to the majority of the countries surveyed.
Meanwhile, Italy, Ireland, Poland and Spain listed insufficient funding as the biggest obstacle.
Focus on standards
Steve Kyle, secretary general of EPPARG, said: “The survey report confirms that equity release providers across the globe are facing similar challenges and opportunities.
“As a global industry, we must now foster awareness of the considerable social and economic benefits that home equity release products can bring, particularly in the light of the global economic downturn triggered by the pandemic.”
He added: “We also advocate a strong focus on standards to build confidence in this innovative product among both investors and consumers.”
David Burrowes, chairman of the Equity Release Council and EPPARG board member, said: “This survey resonates with the council’s 30 years’ experience and focus on supporting customer awareness and confidence by setting and evolving standards.
“It is timely that as the most mature market globally we are closely collaborating with our European friends to encourage the growth of the global equity release market alongside good consumer outcomes.”