New equity release plans have risen by a third as lending passed £800m in a single quarter for the first time, according to the Equity Release Council.

Value of quarterly lending in Q3 2017 has risen by 44% year-on-year as growing numbers look to housing wealth as a core pillar of financial planning for retirement. A total of 9,905 new plans were greed from July to September, a rise of 34% from Q3 2016.

The sector saw activity from almost 18,000 new or returning customer in Q3 2017.

A further shift towards offering more breadth across drawdown lifetime mortgages to reflect consumer demand has meant the proportion of new customers choosing this option over lump sum lifetime mortgages or home reversion plans in Q3 2017 rose by nine percentage points to 77% from the previous quarter (68%) and 15 percentage points year-on-year (from 62%).

Drawdown products typically see customers releasing smaller amounts of equity to begin with (£64,793 in Q3 2017 vs. £100,389 via lump sum plans), therefore reducing the build-up of interest over the duration of the plan. It also provides customers with the flexibility to unlock further sums via future instalments as and when they need to.

Equity Release Council chairman Nigel Waterson commented: “The sustained growth in housing wealth withdrawals is indicative of a wider shift in the way consumers are approaching their retirement planning, by taking a broader range of financial options into consideration.

“Property is, for many people, their largest asset and has the potential to play an increasingly important role in the future of retirement funding. The combination of rigorous safeguards and flexible products in today’s market is one reason why housing wealth is now being used to support a wide range of financial goals. These range from boosting pension income and supporting retirement lifestyles to funding home improvements and adaptations, consolidating debts and providing a living inheritance to younger generations.

“As more homeowners look to housing wealth as a source of retirement finance, The Council and its members will continue to ensure the highest standards of customer protection are in place alongside the continuing innovation that has seen the available product range triple since 2007."

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