Number of equity release plans up 12.8% over past quarter

The equity release market has seen a record level of homeowners taking out plans this year despite month-on-month figures stalling in July, with the amount released remaining at a similar level to June at around £76,000.

Regionally, Scotland saw a 66.9% rise in the total amount of equity released in July vs June, while in the West Midlands individual homeowners released an average of £61,513 from their properties last month, up 55.6% on June.

Steve Wilkie, managing director at Responsible Equity Release, commented: "Activity eased a little in July, but this was largely due to homeowners taking their summer holidays as opposed to evidence of a market slowdown. And despite the quieter summer months, the total amount of equity release released over the past quarter was up on the previous quarter. The equity release market remains in good health and is still on course to be the strongest year ever for the sector.

“It’s evident in the way people see equity release now, that the sector has grown up. Equity release has matured as a product and the popularity of drawdown is an illustration of just how far the industry has come. Homeowners are seeing equity release as a valuable financial solution, particularly in retirement; an income tap to be turned on when needed, and not funds to spend frivolously.”