The average loan size for equity release in H1 2019 fell by almost £2,000 on a yearly basis, according to Key.
However, the total amount of equity released within the same time frame rose by 3 per cent, reaching £1.62bn.
The data also shows that the total number of plans to release equity increased by 5.6 per cent to 22,126.
The research suggests that recorded borrowing in the first six months of 2019 reached £2.38bn, once potential further advances of £706m were taken into account.
Up to half of all customers used equity release to repay debt, 20 per cent via a mortgage, and a 30 per cent through unsecured debt.
Home or garden improvements were the top reason behind people releasing equity at 64 per cent, this was followed by gifts to family members at 28 per cent.
Key chief executive Will Hale says: “Against the backdrop of economic uncertainty, the equity release market has seen a subdued first half with slower growth than in recent years.
“While the key market drivers of low pension saving and substantial property wealth remain, the over-55s are taking a cautious approach to accessing the value tied up in bricks and mortar at the moment but as confidence returns, we do expect the market to pick up.
“That said, the market is benefiting from the arrival of new sources of funding.”