The data, released by equity release adviser Key, showed against the backdrop of the global pandemic the sector experienced a stronger Q4 with 9,930 people releasing over £1.1 billion.

But there was a decrease of 12.5% annually in plan sales (40,470 in 2020 from 46,247 in 2019) and the amount released fell to £3,456 billion from £3,595 billion. Key said this was down to the fact customers were focussing on meeting pressing needs rather than carrying out discretionary spending.

In fact, it found the most common reason customers were releasing equity last year was to make their finances more resilient and help families via gifting.

Key said this trend towards using equity release to refinance debt and support wider families through gifts meant the average amount released increased by 9.2% from £77,735 (2019) to £84,919 (2020).

Helping younger family members led to £755 million being transferred between the generations in 2020.

As the stamp duty holiday deadline loomed, 43% of these gifts were earmarked for housing deposits and 26% for an early inheritance – some of which was no doubt used for other types of property costs.

However, with house prices increasing by 6.43% over the last twelve-months, loan-to-values (LTVs) remained at a ‘modest’ 26% (25% – 2019) across all equity release borrowing and average interest rates fell to 2.8% in Q4 (3.15% in Q4 2019), Key revealed.

Just 11% of the property wealth was spent on home improvements (17% in Q1 2020) and 3% on holidays (8% in Q1 2020).

Will Hale, CEO of Key, said: “While 2020 is down on 2019, the fact that we have only seen a 4.4% drop in the value of equity released suggests that customer demand remains strong supported by the efforts of advisers, lenders and other service providers in this challenging year.

“Discretionary spending has fallen as equity release increasingly looks to support clients’ aspirations to help their families and make their finances as resilient as possible by refinancing debt.”

He added:  “With the end to the Stamp Duty Holiday on the horizon, it is also not entirely surprising to see that many older homeowners have taken the opportunity to pass wealth down the generations and help children or grandchildren onto the property ladder.

“While this may change as we head in 2021 and the holiday comes to an end, I suspect the desire to help families will remain a strong driver of this market in years to come.”