New data released by the Council of Mortgage Lenders shows that in the first six months of this year, the equity release market grew by volume, but declined by value.

The number of new equity release mortgages increased by 2% on the same period last year from 10,877 to 11,130. However, by value there was a decline of 7% on the figure achieved in the first six months last year, from £493 million to £460 million.

The figures bring the total number of outstanding equity release mortgages to 113,678, worth over £5.8 billion. However, this represents just 0.55% of all outstanding lending.

Commenting on today’s new data, CML senior policy adviser Laurence Baxter said: "Today’s data paints an encouraging picture of the equity release market. More people are taking out equity release mortgages, showing that slowly but surely, the market is continuing to grow."

"Consumer confidence will continue to improve if the good practices of providers and some intermediaries become more widespread across the market. One way advisers can do this is by making full use of the tools developed by the CML, such as the good practice notes and Fintal tax and benefits software."

"It is our belief that the market has the potential to continue to grow over the coming years. There is over £1.1 trillion tied up in the homes of people aged over 65, and recently we have seen a wealth of research from various think tanks suggesting ways the market can be opened up to a wider range of people."

The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK.