The equity release market continued to demonstrate resilience in Q3, with total lending rising to £639m, up from £636m in Q2 and 4% higher than the same period in 2024, the latest figures from the Equity Release Council show.
While total plan numbers were lower this quarter, customers released larger sums on average. The Council says this reflects "measured, advice-led financial planning" as older homeowners use housing wealth to manage household budgets, support family members, and plan for future needs in a challenging economic environment.
Adviser feedback gathered through the Council’s quarterly survey paints a picture of a confident yet cautious customer base. Some customers have deferred decisions with three-quarters of advisers reporting that this is due to waiting for rate stability. Those proceeding are prioritising clearing mortgages or managing debt within longer-term financial plans.
Overall, sentiment across the advice community remains positive. The data highlights a mature, stable market where borrowers are acting responsibly and with confidence in long-term property values.
Average loan sizes increased significantly across both new and existing customers, particularly drawdown and further-advance activity.
Additionally, lump-sum lending edged ahead for the first time since late 2022, while drawdown continues to play a key role in enabling flexible long-term planning.
David Burrowes, chair of the Equity Release Council, said: “This quarter’s performance reflects a resilient, confident and responsible market operating in challenging conditions. While fewer customers released equity, those who did were acting with clear financial purpose and strong support from specialist advice.
"Rising average loan sizes, and continued use of drawdown flexibility, show people are using property wealth carefully to manage costs, support family members and plan ahead.
"Equity release remains an important part of later-life financial planning. The sector continues to demonstrate resilience, with robust consumer safeguards and advice standards at its core.”
Lorna Shah, managing director of retail retirement at L&G, commented: “These figures point to a stronger, more mature market, reflecting how housing equity is becoming an increasingly important contributor to retirement planning.
“They also show that more people are using lifetime mortgages to release larger sums, demonstrating that property wealth is being used to fund significant financial decisions. Our own data highlights that customers draw on equity release for a wide range of reasons: from home improvements, and supporting loved ones, to managing day-to-day finances. We expect more people to unlock the £3.7 trillion held in housing equity over the coming decades.
“It’s vital that advisers help clients explore all available options to find the one that best suits their circumstances. As a lender, we work closely with advisers and the wider industry to ensure customers make informed choices that meet their needs. While equity release isn’t right for everyone, it’s crucial that conversations about retirement income take a holistic view, considering property wealth alongside other assets.”
Paul Carter, CEO of Pure Retirement, added: “The uptick in total borrowing highlighted in the latest quarterly figures is gratifying and, when allied with the increase in average loan amounts, underlines consumer confidence in utilising housing wealth to achieve financial goals. However, the reduction in the number of plans being taken out also highlights the ongoing need to support those who are on the fence, by continuing to provide a consumer-focused environment through effective product and service offerings.
"Our own recent research has highlighted the widening demographic profile of our new lifetime mortgage customers, including notable increases in activity on a joint lives basis, and from both younger age brackets and from single males. This serves to underline the underlying potential that remains in the market, and we look forward to working towards ensuring lifetime mortgages continue to offer an effective solution that meets the needs of as many people as possible in 2026.”
