Equity release advances increased by 10% over the past year for SHIP members.
The figure rose to £199.1m (Q 2012), up from £181.6m in Q 2011. The number of plans also jumped from 3,838 to 4,057 in the same period.
Andrea Rozario, director- general of SHIP said: "These figures show that there is a growing appetite among consumers for equity release products."
However, there was an 8% fall in the value of plans (£215.9m) and number of plans (4,399) from Q4 2011. The company says this is the norm as consumers rein in their spending after the festive season.
Drawdown mortgages are still the market leader, accounting for two-thirds (67%) of the market followed by lump sum mortgages (32%) and home reversions (2%).
This is the highest take-up of drawdown plans since Q3 2008 (72%), a sign that people are choosing to withdraw equity to supplement a monthly income, rather than taking out lump sums for one-off expenses, according to the trade body.
Rozario, said: "These figures are extremely encouraging and show that the market is continuing to grow steadily, year on year. Furthermore, the increase in the number of customers electing to drawdown their housing wealth in stages reflects the growing awareness for the different uses of housing equity - such as supplementing an existing income.
"This year is a significant and exciting one for SHIP, as we expand our membership to include members from across the equity release industry. This will allow us to provide an even more comprehensive look at equity release sales figures in the future through the expansion of data available from new members."
Darren Dicks, head of retirement at Aviva said the results show: "the market is firmly back on track and bodes well for the remainder of 2012."
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