"Property wealth is enhancing retirement planning as other retirement income solutions are squeezed by historically low gilt and interest rates."
Total sales for the first nine months of the year have totalled £1.58 billion - 92% of the total achieved in the whole of 2015.
Customers released £633.8 million of property wealth in the third quarter with 8,348 customers taking out plans compared with £470.9 million released in the same period of 2015 by 6,297 customers.
Homeowners gained an average £75,900 each with wide variations across the country. Londoners released £135,886 compared with £44,830 in Northern Ireland.
Across the country nine out of 12 regions saw growth in the value of property wealth released with the West Midlands recording a 67% rise, East Midlands recording a 50% rise, and London a 48% increase. The only area to record a substantial fall was Scotland with an 18% decrease while Northern Ireland and the North West were virtually unchanged.
The biggest growth in plan sales was recorded in the West Midlands where total sales rose 59% followed by the East Midlands on 54% and East Anglia on 53%. Only Scotland reported a drop – sales were down 13% - while Northern Ireland and the North West were effectively unchanged.
Dean Mirfin, technical director at Key Retirement, commented: “The equity release market has already almost matched the record performance of 2015 in just nine months highlighting how property wealth is enhancing retirement planning as other retirement income solutions are squeezed by historically low gilt and interest rates.
“The growth in the average amount released by retired homeowners is making a major difference to lifestyles with the detailed breakdown showing how most are using the cash to improve their homes while also being able to pay off debts and boost income.
“The market is on course for another record year with rate cuts for loans and new providers entering the market providing further momentum. The results also show that demand for tapping into housing equity is very much increasing throughout the UK with most regions recording record growth in plan numbers and total lending.”
