Year-on-Year Growth Highlights Rising Confidence in Equity Release
The latest data from the Equity Release Council (ERC) reveals that in Q2 2025, older homeowners accessed £636 million through equity release, marking a 10 % increase year-on-year from £578 million in Q2 2024.
This steady rise highlights a trend, more homeowners over 55 are now recognising the value locked within their properties. This upward momentum suggests a combination of factors could be at play, including a broader understanding of how housing wealth can complement pensions and savings, competitive product offerings from lenders, and an increased awareness of equity release.
With more flexible repayment options and safeguards in place, homeowners appear more comfortable unlocking property wealth to supplement retirement income, fund home improvements, or assist family members. Overall suitability will depend on individual circumstances, and there may be better alternatives such as downsizing or other forms of borrowing.
Resilient Demand Amid Economic Uncertainty
While the wider housing and mortgage markets remain sensitive to interest rates and economic changes, equity release continues to show resilience. The Q2 ERC data underscores how this segment has held firm, even as overall lending dipped slightly (down 4 % from Q1 2025), likely due to seasonal shifts such as a late Easter and ongoing market caution.
Yet despite these challenges, lifetime mortgage borrowing remains robust. One of the most notable trends is the 14 % increase in average lump sum loans, suggesting growing consumer confidence and a stronger appetite for upfront access to housing wealth.
Why More People Are Turning to Equity Release
Behind the numbers lies a clear motivation: homeowners now want greater control over their finances in retirement.
Whether it’s supplementing income, gifting to family, clearing debt, or funding lifestyle needs, equity release is becoming a strategic tool, not a last resort. In fact, drawdown products, where customers can access funds in stages, accounted for over half of all new plans, pointing to a preference for flexibility and long-term planning.
Expert View: Mainstream Momentum
David Burrowes, Chair of the ERC, commented in the Q2 release that the figures show a “resilient equity release sector” and reflect growing interest in flexible later-life lending products. With over 1,600 product options on the market and enhanced features like voluntary repayments, the sector has evolved to offer tailored solutions that fit a wide range of needs and comfort levels.
The Equity Release Council has also welcomed the FCA’s recent discussion paper around the future of the mortgage market, encouraging further innovation and flexibility, especially in later life lending.
What This Means for Homeowners and Advisers
The growth in equity release lending suggests this market will continue to be a key pillar of retirement planning. But it also raises important questions:
• Are advisers doing enough to communicate the range of options available, in line with their obligations under consumer duty?
• Are consumers aware that equity release has evolved and now offers a greater range of options?
• And how can property wealth be integrated more seamlessly with pensions, savings, and investments?
The answers will define the next stage of growth in this sector.
Final Thought
Equity release has developed into a widely available later-life lending option that some homeowners use to help meet real-life financial needs. With over £600 million accessed in a single quarter, it is clear that property wealth now plays an increasingly important role for many people in retirement planning.
As an adviser, you have a key role in ensuring clients receive balanced, clear, and personalised guidance that meets your Consumer Duty obligations. This means exploring all available options, including alternatives. By doing so, you not only protect clients’ interests but also strengthen trust and long-term relationships.
Let’s Work Together
If you have clients who may benefit from exploring later-life lending options, or if you’d like to discuss how we can complement your advice process through referrals, now is an ideal time to speak to us. Together, we can ensure your clients receive clear, balanced, and fully informed guidance. Why not find out more here?
