The Equity Release Council has published data for the first quarter of 2020.

It shows that £1.06bn of property wealth was accessed via equity release products in the period.

This is up by 14% from £936m a year earlier.

This increase was driven by the return of consumer confidence in the early months of 2020, following an uncertain 2019, before the onset of coronavirus and UK lockdown measures. How far the virus will affect the Q2 figures of course remains to be seen.

Equity release continues to attract attention from consumers as a mainstream financial product for later life, with a 2% increase in new plans agreed by homeowners aged 55+ to 11,079 in Q1 2020 – the largest total for any Q1 period since records began in 1991.

The monies are typically used for a range of purposes include providing additional retirement income, funding one-off expenses and lifestyle purchases, meeting homecare costs and gifting a ‘living inheritance’ to family or friends.

Property wealth in Great Britain is estimated to be worth £5.09 trillion, accounting for 35% of the nation’s total wealth and assets.

Over-55s make up 30% of the UK population (over 20m) according to the latest estimates and 56% of households who own their own home, either outright or with a mortgage.

Drawdown lifetime mortgages remained the most popular type of new plan agreed, albeit with a lower share (57%) than a year earlier (64%). The number of new drawdown plans totalled 6,267.

The average size of the first instalment of new drawdown plans rose 2% from Q4 2019 to reach £68,492, with a further £39,214 reserved for future use.

David Burrowes, Chairman of the Equity Release Council commented:

“These figures reflect the return of consumer confidence to the broader UK economy at the start of the year, after December’s election promised to restore certainty before coronavirus took hold.

“As the nation has since adjusted to life under lockdown, the market has adapted to find solutions for the safe provision of advice and valuations, enabling customers to chose the option of equity release while respecting social distancing guidelines.

“Equity release is a carefully considered choice made by weighing up both short- and long-term needs through a detailed financial and legal advice process.

“Beyond the current uncertainty, property wealth will continue to play an important role as part of a multi-asset approach to meet financial needs in later life.”