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While many traditional lenders have had to put rates up or withdraw products, lifetime mortgage products have remained available and interest rates have not seen the significant increases experienced in other areas, the financial research company said.

David Black, principal consultant of banking for Defaqto, said: "In the medium term I expect to see equity release become a widely considered part of retirement planning as it represents a potential solution to fill the aspirational income needs of the asset rich and income poor.

"Also with increasing numbers of people entering retirement with considerable personal debts, equity release is likely to be a commonly used vehicle for debt consolidation."

Duncan Young, managing director of London-based equity release specialist Retirement Plus, said it was unclear whether the equity release sector had escaped the credit crunch as there could be a delayed response.

He said: "I could be inclined to say equity release is not so far showing the signs of the credit crunch. While some rates have gone up there has has so far not been a reaction in the market but it could take a while to follow through."