Equity release plan sales and total lending have increased, according to the latest KRS Equity Release Market Monitor.
Key Retirement Solutions also found that there is £343 million of untapped funds still available.
The report outlined details of the first annual rise in both total lending and sales of plans since 2007.
Total funds released rose 5.4% to £959.6 million the first rise in four years, while plan sales continued the growth seen in 2010 with a 1.6% rise to 22,366 in 2011.
And once untapped drawdown funds – which have yet to be released – are added in total lending rose to more than £1.3 billion underlining how innovation through increasing use of drawdown has transformed equity release.
Key Retirement Solutions believes however that not enough clients are using drawdown and want to see its share of the market increase. Its own sales see 74% of drawdown compared with the market average of 55%.
The rise of drawdown is reflected in the average amount released by customers falling again to £42,921 which compares with £43,519 in 2010 and £48,212 in 2009.
Dean Mirfin, group director at Key Retirement Solutions, said: “A robust sales and factfinding process has resulted in Key’s percentage of new drawdown business for the year being 74%
