THE equity release market has risen by 24 per cent to £934 million as strong growth continues.

Retired homeowners cashed in more than £934 million of property wealth in the first six months of the year as a buoyant housing market continued to boost retirement incomes, analysis from leading over-55s finance specialist KeyRetirement.com shows.

Homeowners benefitted by £76,300 each, an increase of £7,850 on the same period last year, highlighting the strong demand in using property wealth for retirement planning.

The detailed findings reveal wide regional variances ranging from average releases in East Anglia of more thanover £67,000 to more thanover £184,000 in London.

Key’s equity release market monitor, which analyses data representing equity release council members and non-members, shows total property wealth released in the six months rose 24 per cent to £934 million from £753 million and the total number of plans rose 11 per cent to 12,246 from 11,007.

Rising house prices helped drive confidence with the average property value of homeowners using equity release plans rising 16 per cent to £307,021 from £271,248.

The detailed report by the over-55s specialist shows the money continues to be used to improve standards of living in retirement.

About 65 per cent of customers used some or all of their cash for home and garden improvements while 29 per cent used their property wealth to pay for holidays.

Family and friends also benefitted with 24 per cent of over-55s treating or helping their family and friends.

However, getting out of the red remains an important priority with 29 per cent of customers using the cash to pay off credit card and loan debts while 22 per cent paid off mortgages, Key’s study shows.

Dean Mirfin, technical director at KeyRetirement.com, said: “The equity release market is hotting up, with more mainstream lenders entering the market and more asset-rich homeowners looking to unlock the wealth from their homes in the face of declining annuity rates and continued low interest rates, which hit pensioners the hardest.

“Pensioners who are now considering their home as part of their retirement portfolio are benefitting by £76,300 each, this by far outstrips the size of the average pension pot and provides an important income boost for pensioners who need to secure more funds for their retirement.”

Across the country eight out of 12 regions saw growth in the value of property wealth released with East Anglia recording an 80 per cent rise, Wales 57 per cent and the South East a 33 per cent increase.

Eight out of 12 regions recorded rises in plan sales, East Anglia and Wales saw a 39 per cent rise and the East Midlands a 22 per cent increase.

Around 61 per cent of all sales were drawdown plans, including enhanced drawdown which offers enhanced terms to people with certain health or lifestyle conditions, compared with 39 per cent from lump sum single advance lifetime mortgages including enhanced products.

Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting keyretirement.co.uk/equity-release/free-guide/ Download the full report online at keyretirement.co.uk/equity-release/market-monitor.