"Modern products are more flexible and secure than ever, and, for many homeowners, accessing housing wealth is now a core part of their retirement planning, helping them enjoy financial freedom and a better quality of life"
- Jim Boyd - Equity Release Council
The UK equity release market grew 11% in 2025, according to the latest research from the Equity Release Council. Total annual lending rose from £2.3 billion in 2024 to £2.57 billion last year.
The Council’s data, compiled from actual whole-of-market returns, represents the UK’s definitive figures for the sector. Equity release allows older homeowners to access wealth tied up in their properties without needing to sell or move. Lifetime mortgages account for more than 99% of the market, letting borrowers draw funds without repayments unless they choose to, with the loan and interest repaid when the customer dies or enters long-term care.
Survey data from the Council shows changing uses for equity release:
26% of advisers reported clients using it to clear mortgage balances
21% for home improvements
13% for gifts to family
6% for holidays
4% for large purchases, such as a car
“Growth of 11% underlines the increasingly important role housing wealth is playing in supporting financial resilience and choice in later life,” said Jim Boyd, chief executive of the Equity Release Council (pictured).
“It reflects something far bigger than short-term market movements – equity release is proving vital to meeting people’s social and economic needs."
"Modern products are more flexible and secure than ever, and, for many homeowners, accessing housing wealth is now a core part of their retirement planning, helping them enjoy financial freedom and a better quality of life. Releasing property wealth now supports around £1 in every £90 spent by retired households.”
Q4 2025 performance
In Q4 2025, total lending reached £632 million, a 1.6% increase compared with £622 million in Q4 2024. The average release rose 5.7% year on year to £123,174, while 1,468 customers returned for further advances compared with 1,411 in Q4 2024.
Looking ahead: 2026 and beyond
Four in five advisers (80%) expect lending in 2026 to exceed 2025 levels, while only 2% forecast a decline. A similar proportion anticipates growth in overall customer numbers.
“Increasingly, releasing equity is part of homeowners’ retirement plans,” said David Burrowes, chair of the Council. “Almost four in every ten future retirees (38%) are on track for a retirement income below the Pensions UK ‘minimum standard’. Demographic and economic pressures mean the demand is there and likely to grow. Innovations in product design are making modern equity release more flexible and secure, making it more attractive to consumers.
“The Council also sees sustained long-term growth being supported by increased collaboration across the later life lending sector and regulatory engagement. In Q1 2026, the Financial Conduct Authority launches a focused later life lending market study, examining how mortgages and property-based solutions can better support consumers borrowing into retirement.
“This is an important step which reflects the reality that borrowing in later life is becoming more common and that the market must continue to evolve to deliver good consumer outcomes. That regulatory focus, combined with collaboration and continued product innovation, gives us confidence in the sector’s long-term direction. We have never had a better opportunity to bridge the retirement later life funding gap.”
