Homeowners in London have released an average of almost £150,000 from their properties to clear mortgages, pay off debts and provide early inheritance, according to figures from Responsible Equity Release.

Over the past year, the average equity release loan size in London was £147,756, an increase of 11.6% compared to the previous 12 months. This compares to an average loan size of £66,217 in the South East, £60,544 in the South West and £48,727 in the East of England.

Reasons for releasing equity from their homes include paying off mortgages, clearing debt and helping out the family. According to Responsible Equity Release, 29% took out plans to clear mortgages, 19% for home improvements, 16% as an early inheritance, 12% for holidays, 11% to provide a cash cushion and 10% to clear outstanding debts.

Steve Wilkie, managing director of Responsible Equity Release, said: “The equity release market goes from strength to strength. More people than ever are using the equity in their homes for a variety of reasons, from supplementing their retirement income, to providing lump sums to pay off mortgages and clear debts.

“Rising property prices have certainly been a contributory factor, particularly in London, where house prices have hit record levels. And with other investments stagnating, equity release has provided an invaluable lifeline for thousands of pensioners who have found that their pension income is not sufficient to fund their retirements.

“The equity release industry has also been far more receptive to innovation, recognising the importance of meeting the changing demands of customers who are more aware of equity release but want more choice and flexibility.

“Products such as interest-only lifetime mortgages, flexible repayment, downsizing protection and inheritance guarantee, are attracting a whole new market to the benefits of equity release.”