"Whilst 2019 was not witness to some of the growth trends we’ve seen in previous years, lifetime mortgages still remain one of the fastest-growing parts of the mortgage market."
A total of £3.92 billion of housing equity was withdrawn by older homeowners in 2019, down slightly from 2018's figure of £3.94bn.
The market has seen a four-fold increase over the past decade, with the amount accessed by older homeowners per year growing from £945.97 million in 2009.
However, last year saw the market "consolidate its growth" in a cautious economic climate, according to the Council.
But growth could return to the market, with more than £1 billion unlocked in Q4 - the busiest period of the year. Moreover, it was also one of the busiest quarters on record, second only to Q4 2018 when lending volumes were just 0.1% higher.
Additionally, consumer demand continued to grow in 2019, with the total number of customers served reaching a record high of 85,497.
The Equity Release Council says increased product features and flexibilities, such as the ability to make voluntary or partial repayments with no early repayment charge, has helped fuel this long-term growth in product uptake. Additionally, the Council’s Autumn 2019 Market Report showed that the average interest rate dropped to a record low of 4.91% in September 2019.
Furthermore, while the customer base has grown to new levels, the average amounts withdrawn by homeowners have remained steady.
David Burrowes, chairman of the Equity Release Council, commented: “After a period of steady growth, the market has reached a point of consolidation in 2019 with lending volumes in line with 2018. The sector enters 2020 in a strong position with updated standards and a greater number of diverse members signed up than ever before. Looking ahead, we’ll continue to work with stakeholders to ensure consumers are able to access the best advice while ensuring joined-up financial planning so that equity release remains a key consideration in mainstream retirement planning.
“Previously viewed as a niche product to support people’s retirement plans, the untapped potential of equity release is now being recognised. This comes as a growing number of customers are recognising the important role property wealth can play in meeting their retirement needs. This has been driven by competition, falling interest rates, increasing numbers of flexible and innovative product options and supported by rigorous standards in the market.”
Claire Singleton, chief executive of Legal & General Home Finance, added: “Whilst 2019 was not witness to some of the growth trends we’ve seen in previous years, lifetime mortgages still remain one of the fastest-growing parts of the mortgage market. A four-fold increase in growth over the past decade is transformational, and the 85,000 plus homeowners who chose to utilise their property wealth in 2019 would no doubt attest to the product’s ability to change lives. With Q4 2019 welcoming more new customers than any other period in the year, there’s also reason to be positive about how people are responding to easing political uncertainty. With Brexit now underway and no more elections on the horizon, customers can now get back to planning their financial lives with more certainty."
