The report’s fifth chapter, Housing Finance, found that home-ownership has been on a “steady upward” trend over the years, generating an expanding pool of consumers aged 65 and over who could turn to equity release as a source of income.
However, Mr Cazalet argued that enthusiasm for housing as an investment has not yet translated into more appetite for equity release.
He said: “The sector still appears to face headwinds with regard to consumer attitudes.
“There is not so much enthusiasm for financial decumulation in retirement involving borrowing against your own home through equity release.”
The report found that equity release sales had recovered to £926m by 2012, when the average amount being released stood at £52,000.
Mr Cazalet said this figure, the highest since 1998, reflected that households were carrying more mortgage and credit card debt into retirement and sought solutions for products such as interest-only mortgages.
Tim Sutcliffe, managing director of Shropshire-based Pi Financial, said: “The problem is there are relatively few providers of equity release plans, and the providers that are in the market need to be less greedy with their terms.”