"The over-55s are taking a cautious approach to accessing the value tied up in bricks and mortar at the moment but as confidence returns we do expect the market to pick up."
Key's research shows that the total value released edged up by 3% to £1.68 billion while the number of plans saw a year-on-year increase of 5.6%.
Average loans taken by customers dropped in value by nearly £2,000 to £76,064 compared with the same period a year ago.
Key says the sector is reacting to current economic conditions seen across the property market and growth has slowed.
Will Hale, CEO at Key, said: “Against the backdrop of economic uncertainty, the equity release market has seen a subdued first half with slower growth than in recent years. While the key market drivers of low pension saving and substantial property wealth remain, the over-55s are taking a cautious approach to accessing the value tied up in bricks and mortar at the moment but as confidence returns we do expect the market to pick up.
“That said, the market is benefiting from the arrival of new sources of funding which is helping to keep rates at historic lows and to drive the launch of various new products. Consequently, we have seen an increase in the number of customers remortgaging to benefit from lower rates or the opportunity to release additional equity due to house price rises or the higher LTVs that are now available.
“The myriad of different reasons that customers use equity release for highlights how vital specialist independent expert advice is to ensure that older homeowners are helped to make the right choices for their individual circumstances.”
