Equity release schemes have been backed by the Personal Finance Society (PFS), with the body claiming that they have "a rightful place in the market".

Writing on the Money Marketing website, PFS chief executive Fay Goddard pledged her support to those who unlock the value of their property but called for tighter regulation of the financial advice sector.

She wrote: "I believe equity release has a rightful place in the market and fully support the desire for a professional and trusted adviser community.

"However, to achieve this, I question if both the level of the current qualification and the scope of FSA permissions is correct."

Ms Goddard added that advisers should have a Qualifications and Credit Framework level four investment qualification, rather than the current required level three certificate.

A recent study by LV= revealed that 98 per cent of financial advisers believe the popularity of equity release schemes will rise as UK consumers look to make up for pension shortfalls.