Over 200 customers a day chose an equity release plan in the second quarter of the year, said the Equity Release Council.

The trade body for the sector added that £1.6bn of property wealth was withdrawn between April and June, as 12,485 new plans were taken out.

This was a year-on-year increase of 26%, but still lower than the peak in 2018.

The average amount of equity release taken out by new customers was £135,000, while returning drawdown customers typically withdrew £13,506.

David Burrowes, chair of the Equity Release Council, said: “The fact that hundreds of homeowners are now choosing to release equity each day, based on detailed financial and legal advice, is significant progress from the days when the market was considered an under-developed niche rather than the mainstream option it has become.

“Raising awareness of how modern equity release products work alongside other financial solutions is essential so people who are asset-rich but cash-poor can benefit from the wealth they have built up over their lifetimes and also support those around them.”

Paul Bridgwater, head of lending at OneFamily, added: “Our recent research found that more than five million over 50s are thinking about releasing wealth from their properties to help younger relatives as house prices soar and the cost-of-living crisis bites. They want to see the benefits of all their hard work and pass on wealth that’s tied up in bricks and mortar to give their families a helping hand during their lifetime.

“The protections offered by members of the Equity Release Council, such as the no negative equity guarantee, mean that people are more confident when considering lifetime mortgages. So, it does not surprise me to see that it’s increasingly becoming a way to finance needs in later life.”