A "flood" of new customers are releasing equity from their property, with a 15% rise in Q3 to £284.1 million, according to new data published today.
That is the highest quarterly jump since 2004, and marks an increase of 14% year-on-year, according to the latest figures from The Equity Release Council.
Almost 14,000 homeowners have released equity from their property in 2013 to date, with nearly 5,000 new customers coming to the market in the last three months alone.
The 4,975 new customers in Q3 marks a 7% rise on Q2 and is the largest number in a single quarter in four years, just short of the Q2 2009 figure £5,198. The figure is 4% higher than one year ago.
The average amount released has also broken records, with each customer now releasing £57,107. This amount is the largest since the quarterly survey began in 2002.
The ERC put this down to the increasing cost of living and dwindling saving pots among the over-55s.
The total value of both lump sum and drawdown mortgages also increased in the last quarter, with drawdown mortgage values reaching £187.9m, the highest since 2008, and lump sum mortgage reaching £95.7m, the highest since 2009.
Drawdown mortgages remain the more popular choice with consumers, representing 66% of market value.
The figures also show that 97% of equity release plans are sold through IFAs.
ERC chairman Nigel Waterson said: “The equity release market is very much alive. It is encouraging to see significant increases in not only the number of over-55s making the most of their property wealth, but also the amount that each individual is able to release.
"This is a sign that equity release has an increasingly important place to play in financial planning for later life, giving advisers a key option to assist their clients among the range of retirement products.
“With house prices rising month-on-month, but saving pots dwindling and the cost of living soaring, equity release can offer homeowners a way to take the stress out of retirement, whether it be to help with those outstanding debts or to enjoy your later years.”
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