The UK equity release market demonstrated resilience during Q3, with new customer numbers and returning drawdown activity edging higher, the latest figures from the Equity Release Council show.
Total lending reached £591 million during Q3, down 1% on the previous quarter, while overall customer numbers increased 1% to 13,611.
The number of new customers rose 1% to 5,357, while returning drawdown customers increased 3% to 7,169. However, further advance customer numbers fell 10% to 1,085.
Although new customer numbers increased over the quarter, total lending was down 7% compared with Q3 2025, while overall customer numbers fell 6% year-on-year.
Average borrowing patterns continued to reflect a cautious approach to accessing housing wealth. Average new lump sum borrowing fell 1% over the quarter to £112,822, while average initial drawdown borrowing decreased 8% to £58,473.
In contrast, average drawdown reserve facilities increased 3% to £58,497, suggesting customers continue to value having access to future borrowing rather than taking the full amount upfront.
Advisers expect activity to remain subdued
The latest adviser survey presents a mixed picture of market conditions. Compared with Q2, 42.5% of firms reported an increase in customer enquiries, while a third reported applications rising and a third reported them falling. Case completions were under greater pressure, with 40% of firms reporting a decline.
Available loan-to-value ratios remain a concern, with two-thirds (66.7%) of advisers reporting that these had fallen over the quarter. However, enquiry and applications levels have risen compared to Q3 2025: 47.5% of firms reported higher enquiries year-on-year, while 37.5% reported an increase in applications.
Advisers said borrowing costs and the amount customers can release remain important factors when customers decide whether to proceed. Among firms whose customers chose not to take out equity release in Q3, 80.6% said rates were too high, while 61.1% cited customers being unable to secure the loan-to-value they needed. A further 36.1% said they had advised customers to wait.
Looking ahead to Q4, advisers expect activity to remain subdued. Almost half (45.9%) expect customer enquiries to remain unchanged, while 51.4% anticipate applications holding steady. However, 29.7% expect case completions to fall, and just over half (51.4%) expect available LTV ratios to decline further.
John Godfrey, chair of the Equity Release Council, said: “The latest figures show a market that is demonstrating resilience, with some areas of activity moving in the right direction despite the wider pressures on household finances. It is encouraging to see new customer numbers and returning drawdown activity increase over the quarter, although overall lending remains below the levels recorded a year ago.
“Customers increasingly need flexibility and choice when considering how to fund later life. Housing wealth can form part of that picture, but it is essential that people receive high-quality advice and have strong consumer protections in place to help them make informed decisions that are right for their circumstances.”
Jim Boyd, CEO of the Equity Release Council, commented: “The adviser survey reinforces the picture of a market where demand remains, but in an economically challenging environment converting interest into completed business is proving more difficult. Borrowing costs and loan-to-value constraints continue to affect customers’ decisions, while some are choosing to wait rather than proceed immediately.
“Consumers are still considering how housing wealth could support their finances, even if they are taking longer to make decisions. With the Budget approaching on 28th October, some customers may also want greater clarity about the wider outlook before committing. We will be watching closely how confidence and adviser activity develop through the final quarter of the year.”
