A total £1.71bn in property wealth was withdrawn through equity release in the third quarter, figures from the Equity Release Council have revealed.

The figure continues the trend of quarterly increases during 2022, having risen from £1.53bn in Q1 and £1.60bn in Q2, to reach £4.84bn for the first nine months of the year.

Comparing 2022 to date with the same period in 2021, when activity remained below pre-pandemic levels, the Council’s figures show that the total number of customers served has grown by 36% to 72,824, while total lending has risen 40%.

Homeowners over the age of 55 took out a record 13,452 new equity release plans in Q3, which is an 8% increase on the previous quarter. With 9,648 returning customers and 2,419 further advances agreed, the market saw 25,519 customers active during Q3. This was an increase of 967 active customers (8%) on the previous quarter and a year-on-year increase of 6,219 (32%).

Chair of the Equity Release Council, David Burrowes, said that the summer months saw the equity release market resume its “pre-pandemic growth trajectory”.

“Equity release is not an overnight purchase, and the desire to secure lower interest rates before anticipated rises is likely to have influenced customers’ timings as they completed deals from earlier in the year,” Burrowes said.

“While recent turbulence in financial markets has added to upward pressure on interest rates, product flexibilities and stringent safeguards mean modern equity release remains the most secure and adaptable way to access the money tied up in your home without giving up ownership or risking repossession through fixed repayment commitments.

“With the value of UK homes having passed £7trn, people are increasingly inclined to put their property wealth to work in later life to support themselves and family in the here-and-now.”

Commenting on the Council’s data, CEO of Legal & General Home Finance, Craig Brown, added: “As we look to the next three months, we expect that gifting will remain a popular use of equity release. We could also see customers looking to access property wealth to finance energy efficiency improvements to make homes more sustainable for the long term.

“As ever though, it is not a quick fix, but an important product to be considered as part of a wider approach to retirement planning.”

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