Equity Release Supermarket (ERS) has seen a 31% growth in lending from Q1 2018 to Q1 2019, with the total number of new equity release customers increasing by 32% YOY in Q1 2019.

ERS has found that the most common uses for equity release have remained stable year on year. The most common reason given was to repay an outstanding mortgage (25%), followed by home improvements (21%) and gifting to children (12%).

These findings are very similar to those of the Equity Release Council, who also found that paying off mortgages and home improvements were common reasons for releasing equity, particularly among younger borrowers (those between the ages of 55 and 64).

ERS also saw strong growth across all regions with the exception of London where the share of total lending fell from 22% to 10% YOY. This is reflective of the continued fall in house prices in the capital and the wider metropolitan area. The Nationwide House Price Index for Q1 2019 reported that London house prices fell 0.8% YOY and in outer metropolitan area, house prices fell by 1.4%.

The strongest growth was seen in the North, reflecting the relatively buoyant housing market. The North West share of equity release lending grew from 7% to 10% in Q1 YOY, while in Yorkshire and Humberside lending grew from 1% to 4%.

In the same period, house prices increased by 2.2% and 3.7% respectively.

Mark Gregory, CEO of Equity Release Supermarket, said: “The equity release market continues to grow apace as more and more older homeowners realise that their homes are investments integral to their later life financial planning.

“With the exception of London we have seen strong growth across all the regions and I’m delighted that Equity Release Supermarket’s growth of 31% in Q1 2019 is outpacing the market growth of 8%. This is reflective of the launch of our new website in late 2018 and our continued investment in digital channels, technology and our people.”