The Equity Release Council has said that market figures for the third quarter of 2012 show significant growth in both volumes and value.
It said that In Q3 2012, total advances of £248.9m were recorded, which is 11 per cent up on last quarter (£224.8m) and 21 per cent up year on year (£206.1m).
This is also the largest amount of equity released since Q4 2008 (£274.1m) and indicates that as life returns to the residential mortgage market, the equity release market is following suit, it said.
The number of plans sold also increased from 4,302 to 4,777, quarter-on-quarter, which is the highest number since Q4 2009 (4,888).
Andrea Rozario, director general of the Equity Release Council said: “Q3 is traditionally one of the strongest quarters in the equity release calendar and today’s figures highlight the fact that the market is firmly back on track for sustained growth. If we see more than £200m worth of equity released in Q4 – something that we are on track to do – then this year we will out-perform both 2011 and 2010.
“This indicates a renewed consumer interest in these products and is excellent news for the market – as well as The Council. All the signs support the fact that people will need to factor in their housing equity when they plan for their retirement and the recent upsurge suggests this message is being heard.
“2012 has been a big year for the Equity Release Council as we rebranded and expanded our membership and today’s figures highlight the true potential of this market.”
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