Equity Release Market Shows Strong Recovery in Latest Quarter

The equity release sector demonstrated remarkable resilience in Q4 2024, according to the latest Equity Release Council market report.

The data reveals three consecutive quarters of growth in both lending and total plans – a milestone not seen in the past two years, indicating a significant market recovery despite challenging economic conditions.

Analysis of the quarterly figures shows particularly strong performance in customer engagement, with returning customers increasing their use of further advances by 27%. This surge in activity, supported by stabilising UK house prices, suggests growing confidence among homeowners in leveraging their property wealth strategically.

The report highlights an 8% increase in average initial drawdown loan sizes, with customers increasingly utilising reserve facilities for efficient long-term borrowing management. This trend reflects the market’s evolution toward more sophisticated financial planning approaches, as homeowners seek flexible solutions for various needs from home improvements to retirement income supplementation.

Product innovation continues to drive market development, with providers offering increasingly diverse solutions to meet varying customer requirements. This adaptation to changing consumer needs has helped maintain market momentum throughout 2024, setting a positive trajectory for 2025 as interest rates show signs of stabilisation.

Commenting on the findings, Damon O’Connell, Head of Key Partners, said:

“There are reasons for cautious optimism as we move into 2025. The latest data shows signs of a sustained recovery, and as confidence continues to build, we expect more advisers to explore later life lending solutions for their clients. However, navigating this evolving market can be complex, and that’s where expert support is invaluable. At Key Partnerships, we work closely with advisers who may not specialise in later life lending, helping them to refer clients to suitable solutions while ensuring they receive the best possible outcomes. If any advisers would like to discuss how we can support them, our team is always here to help.”

*Source: Equity Release Council Quarterly Market Report, Q4 2024