Equity released increased to £261.25 million in the third quarter of 2011 with another £117.8 million available to be withdrawn, according to analysis from Key Retirement Solutions.

The equity release provider is urging retired homeowners to focus on the benefits of drawdown to retirement income as its Equity Release Market Monitor shows on average customers are leaving £23,465 to potentially withdraw later on.

Key Retirement Solutions suggest a “dramatic shift to drawdown”” has galvanised growth in the equity release market with effectively £379 million of new business done in the three months to September 30th.