Equity release sales reached £613.32 million in nine months, according to the latest Key Retirement Solutions (KRS) Equity Release Market Monitor.

It also found that almost two out of three customers opting for equity release are using some of the cash for home and garden improvements.

The group’s Equity Release Market Monitor for the first nine months of 2010 shows up to £613.325 million of housing wealth was released compared with £586.7 million in the same period of 2009 as the total sales of plans continued to rise.

KRS argues the increasing use of equity release for maintaining and improving the home reflects the fact that in retirement we spend more time in our homes and maintaining and improving the home remains a priority. KRS says it could also suggest that those unable or unwilling to move in the current climate are deciding to stay put instead and invest in their homes.

63% of customers opting for equity release in the three months to 30 September used some of the cash for home and garden improvements compared with 43% in the same period last year and 31% used some of the cash to fund holidays compared with just 19% in the third quarter of 2009.

Total sales of plans climbed 7.2% to 17,121 in the nine months from 15,969 in the same period of 2009 with drawdown plans – which enable customers to take cash when it is needed rather than as a single lump sum – making up 74.5% of sales compared with 63% last year.

The effect of the continued move towards drawdown can be seen in the average amount released which for the nine months was £39,953 compared with £41,728 in the same period of 2009.

Around 35% of customers used some of the money to pay off credit cards or loans in the three months to 30 September, virtually unchanged on 36% in 2009.

Dean Mirfin, group director at Key Retirement Solutions, said: “Total sales of plans and total amount of equity released are both demonstrating strong growth with customers increasingly using the money to improve their homes or gardens.