A total of £1.53bn was withdrawn from UK property in the first quarter of this year, says the Equity Release Council (ERC).

This is up from £1.34bn in the final quarter of 2021, a 14% increase, and it sets a new quarterly record.

The number of both new and returning equity release customers – 23,395 – is also a new quarterly record, the ERC adds, being the first time this metric has moved past 23,000.

The trade body also remarks that the number of new plans agreed came to 12,174 in Q1 2022, which is up 21% on the year, with drawdown lifetime mortgages the most popular form of equity release, with 54% of new borrowers opting for this.

And the average size of a first instalment of a drawdown lifetime product increased by 5% over the year, to £94,215, while the average lump sum amount moved up by 7%, to £131,781.

The ERC points out that the combined average of these, 6%, is very close to the latest bout of inflation as read by through the consumer price index – 6.2%.

For the sake of comparison, house prices in February, meanwhile, moved up by 11%, the report mentions.

ERC chair David Burrowes says: “The popularity of equity release so far this year is the natural result of modern products offering greater flexibility and a property market where growth has far outstripped inflation, alongside an ageing population.

“After two years where customer numbers have been subdued by the pandemic, realising gains from rising house prices can make a major difference to people’s quality of life.”

Air Group chief executive Stuart Wilson comments: “Until inflation starts to ease, we anticipate that we will see the number of borrowers using later life lending to reduce the pressure on everyday expenditure continue to build.

Our market is growing rapidly… and the onus is on advisers to guide borrowers towards the best solution for their financial needs amongst the increasing number of options.”