The group director of Key Retirement Solutions said the figure demonstrated how households were considering housing wealth as a solution to problems such as interest-only mortgages and an alternative source of funds in retirement.
Figures from the equity release adviser showed that customers released an average of £57,286 from their homes – 10 per cent more than in the same period last year.
Eight out of 12 regions saw a rise in the total value released from homes, with the southeast unlocking the biggest amount at £70.86m. It also sold the most equity release plans at 1229. Both Northern Ireland and Scotland saw sales of equity release plans roughly double, but regions such as Yorkshire and Humberside and East Midlands saw a drop in the amount released and the number of plans sold.
The firm’s Market Monitor research also revealed that £808.2m had been released from homes so far this year, up 15 per cent on the £702.8m seen across the first three quarters of 2012.
Mr Mirfin said: “The equity release market was already growing strongly before the housing market revival driven by increased innovation and adviser expertise.
“The market is on course for a record year with growth built on strong foundations due to its focus on advice and delivering solutions which suit changing lifestyles and reflect customer needs.”
Meanwhile a new lifetime mortgage outsourcing service has been launched by equity release specialist Stonehaven for advisers, lenders and life insurers. Onyx Servicing will provide existing and new entrants to the market with back-office support.
Jason Butler, senior partner of London-based Bloomsbury Private Wealth, said: “For people who are too proud to get involved with inter-generational financial planning or adult children who cannot help their elderly parents financially, equity release and lifetime mortgages are valid. But these options are not cost free. They are more suitable for what I call modest and mass affluent clients.”
|Region||Total plans sold Q3 2013||Total plans sold Q3 2012||Total value released Q3 2013 (£m)||Total value released Q3 2012 (£m)|
|Yorkshire and Humberside||362||409||13.909||15.078|