"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"
The figure represents a 24% rise from £753 million the previous year. The average property value of homeowners using equity release plans rose by 16% to £307,021 from £271,248.
Homeowners benefitted by £76,300 each – an increase of £7,850 on the same period last year.
The findings reveal wide regional variances, with average releases ranging from in East Anglia of over £67,000 to over £184,000 in London.
Dean Mirfin, technical director at Key Retirement, 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.”
