Equity Release Returns to Growth: What The Latest Figures Mean For Advisers
The equity release market returned to quarterly growth in Q2 2026, according to the latest figures from the Equity Release Council (ERC).
Total lending increased by 4% from the previous quarter, reaching £597 million. Overall customer numbers rose by the same percentage to 13,489.
Although lending and customer activity remained below Q2 2025 levels, the quarterly improvement suggests that demand is beginning to recover following a slower start to the year.
New customers are driving the recovery
The strongest growth came from homeowners entering the equity release market for the first time.
A total of 5,307 new customers accessed their housing wealth during Q2. This is 9% more than in Q1 and in line with the number recorded during the same quarter of 2025.
For financial and mortgage advisers, this may indicate that more clients are becoming receptive to discussing property wealth as part of their later-life plans. This could be particularly relevant for clients looking to:
- Repay an existing mortgage or other borrowing
- Supplement their retirement income
- Fund home improvements or adaptations
- Meet care-related costs
- Provide financial support to family members
Existing customers also remained active. The number taking further advances increased by 12% to 1,204, while returning drawdown customer numbers dipped slightly by 1% to 6,978.
Customers remain cautious about how much they borrow
Despite the increase in activity, average borrowing figures suggest that customers continue to approach equity release carefully.
The average new lump-sum release fell by 6% quarter-on-quarter to £113,779. Average initial drawdown borrowing increased by 2% to £63,642.
Average drawdown reserve facilities stood at £56,893. While this was lower than in Q1, it was 7% higher than a year earlier.
This continued preference for drawdown products may reflect customers’ desire to retain flexibility and avoid taking more money than they immediately need. For advisers, it reinforces the importance of considering both present and future borrowing requirements when discussing later-life lending.
Demand appears to be delayed rather than lost
The ERC’s adviser research provides further insight into current customer behaviour.
Almost three-quarters of advisers surveyed (74%) said some customers were delaying decisions while waiting for borrowing costs to improve. A further 55% reported that customers had been unable to obtain the loan-to-value they required.
These findings suggest that underlying demand remains resilient. Some customers may not have abandoned their plans but are instead waiting for rates, product terms or their personal circumstances to become more favourable.
This creates an opportunity for advisers to revisit previous conversations. Clients who decided against equity release several months ago may benefit from a review of their circumstances and the options now available.
Advisers are cautiously optimistic
Sentiment for Q3 was broadly positive.
More than a third of firms expected enquiries and completions to increase, both at 37%, while 35% anticipated more applications. Only one in ten expected enquiries to fall, and 47% believed application levels would remain broadly stable.
Almost half of the firms surveyed also expected rates to be lower than their 2025 levels.
While economic uncertainty and borrowing costs remain important considerations, the figures point to a market with recovering momentum and continued customer interest.
Housing wealth is becoming part of wider retirement planning
Equity release should not be considered in isolation. Increasingly, housing wealth forms part of broader conversations involving pensions, savings, investments, mortgages and future care needs.
Financial and mortgage advisers are well placed to identify clients who may need specialist later-life lending support. Potential indicators might include clients approaching retirement with an outstanding mortgage, insufficient pension income or significant property wealth but limited accessible savings.
Early conversations can help clients understand the full range of options, including alternatives to equity release. Where specialist advice is required, introducing the client to an appropriately qualified adviser can help ensure they receive a thorough assessment of the costs, risks and potential implications.
Equity release will not be suitable for everyone. It can reduce the value of a client’s estate, interest may accumulate over time, and taking funds could affect entitlement to means-tested benefits. Clients must receive regulated financial advice and independent legal advice before proceeding.
An opportunity to revisit client conversations
The latest ERC figures suggest that confidence is beginning to return, led by stronger new-customer activity and demand for flexible borrowing.
For advisers, the message is not simply that the market is growing. It is that more homeowners may be ready to consider how their property wealth fits into their wider financial plans.
Now could be an appropriate time to reconnect with clients who previously deferred a decision, review later-life borrowing needs and identify cases where specialist equity release advice may be valuable.
Refer a client to Key Partnerships
If you have a client who could benefit from specialist equity release advice, Key Partnerships is here to help. Get in touch with our team to discuss a case or make a referral.
