Most advisers expect the market to exceed the £5bn mark this year.
Almost two in five (38%) financial advisers expect their clients to be younger in age, whilst more than one in five (21%) expect the size of the loans to increase, Canada Life has found.
Advisers expect 2020 will be another strong year for the sector, with the majority predicting the market will exceed the £5bn mark.
This growth will largely be driven by people wanting to gift to their family, selected by 59% as the most likely reason to take out equity release.
Alice Watson (pictured), head of insurance marketing at Canada Life, said: “Equity release products have grown in popularity, almost since their inception.
“As the market grows and matures, home finance options are becoming a key source of retirement income for many retirees, particularly for supporting their families.
“An important way in which people can support their families is by helping the younger generations to get on the property ladder.
“With house prices continuing to rise, it’s likely that more retirees will want to help their children and grandchildren in this way.
“Equity release allows them to use the value in their property to do this, whilst staying in their own home.
“The fact that clients are expected to be younger next year is likely linked to over 55s looking to help family by giving an early inheritance.”
Some 8% of advisers predicted that needing to fund the cost of care will be a main driver of equity release demand in 2020.
Watson added: “We know that nearly 14 million people plan to remain in their current home in retirement.
“Over the last year, clients have been using equity release to either fund home improvements so that they can continue living in their house, or for at home care.
“As people choose to age in place, it’s important that they can adapt their home to meet their changing needs.
“While we await the government’s social care green paper, it’s likely that more people will consider how they can use equity release to ensure they are able to enjoy a comfortable retirement, in their own home.”
