Over £219 million of housing wealth was released in the first quarter of 2011, according to Key Retirement Solutions.

It says this was down to the ‘drawdown effect’ continuing to boost equity release plan sales.

Sales of plans rose 3.7% in the first three months of 2011 to 5,812 compared with the same period of 2010.

Key Retirement Solutions Equity Release Market Monitor shows the total value of equity release rose from £216.9 million in the first quarter of 2010 to £219.85 million in the first three months of 2011.

The growing use of drawdown, which accounted for three-quarters of all sales, was the main driver in market recovery with a further boost from the use of enhanced equity release aimed at customers with medical or lifestyle issues.

The average amount released by customers to £37,089 in the first three months of 2011 compared with £43,090 in the same period of 2010.

Drawdown accounted for 75% of sales in the first quarter compared with 68% in 2010.

Dean Mirfin , group director at Key Retirement Solutions, said: “The market recovery is on course after three years of decline with enhanced equity release making an important contribution.