The figures from the ERC revealed that £1bn of housing wealth was released during 2013 with 97 per cent of customers taking an advised sale route, up from 60 per cent in 2003.
Statistics revealed that more than 10,000 new equity release customers took out the product in some form during the second half of 2013, while total equity release lending for 2013 was 16 per cent higher than 2012, and 36 per cent higher than 2011.
Some 66 per cent of customers opted for regular income drawdown products, while 34 per cent chose lump-sum payments.
Bubbles:
16% - rise in total equity release lending from 2012 to 2013
36% - rise in total equity release lending from 2011 to 2013
Adviser View
Kim Barrett, director of Hertfordshire-based Barretts Financial Solutions, said: “The increase in popularity of these products does not surprise me simply because people are arriving in retirement less endowed with assets, which is down to an apathy towards pensions.”
