Today’s Equity Release Market: Resilience, Confidence, and the Role of Advice
The latest figures from the Equity Release Council show that the later life lending market continues to demonstrate resilience and maturity.
Total lending in Q3 2025 reached £639 million, a slight rise from £636 million in Q2, and 4% higher than the same period in 2024.
While plan volumes dipped this quarter, the data paints a positive picture: older homeowners are making considered, advice-led decisions about how best to use their housing wealth in challenging economic conditions.
Advisers at the Heart of Responsible Decision-Making
Advisers remain central to the market’s steady performance. The Council’s latest adviser survey highlights that clients are confident but cautious, with around three-quarters of advisers noting that customers have paused decisions while waiting for rate stability.
Those who do proceed are taking a long-term view, using equity release to:
- Clear or manage mortgage debt
- Support family members financially
- Boost income or cover essential costs
This behaviour underlines the value of professional guidance in ensuring customers achieve sustainable outcomes.
Market Activity: Measured Growth, Larger Loans
Although total plans fell 9% compared with Q2, the average amounts released per customer increased.
This demonstrates that while fewer customers are taking out new plans, those who do are making more substantial, deliberate choices.
Key data highlights include:
Total lending: £639m (+4% year-on-year)
Total plans: 13,158 (-9% quarterly)
Average initial drawdown: up 27% from Q2
Drawdown reserves: up 43% year-on-year
Lump-sum products slightly overtook drawdown for the first time since 2022, with 51% of new plans structured as lump sums. This shift suggests that customers seeking greater certainty or flexibility in the current rate environment are turning to immediate-release options.
A Mature, Confident Market
Despite wider economic uncertainty, adviser sentiment remains broadly positive.
Borrowers continue to act responsibly, demonstrating confidence in the long-term value of property and the role of housing wealth in financial planning.
The Q3 figures confirm that the equity release market is stable, sustainable, and advice-driven, an encouraging sign for the later life lending sector.
What This Means for You and Your Clients
For advisers and intermediaries, this data reinforces the importance of proactive, holistic conversations around later life finance.
As more homeowners look to balance rising living costs with long-term planning, equity release offers a flexible and powerful tool when used appropriately.
At Key Partnerships, we’re here to help you make those conversations easier, with dedicated support, tools, and insight to help your clients achieve the right outcome for their needs.
