"After two years where customer numbers have been subdued by the pandemic, realising gains from rising house prices can make a major difference to people's quality of life."
This figure is up from 19,975 in Q4 2021 and 16,527 in Q1 2021 when pandemic restrictions were still in place, and is the first time that total customer numbers have exceeded 23,000 in any quarter.
Q1 2022 saw customers unlock £1.53bn of property wealth in total. This was up 14% from £1.34bn in Q4 2021 – previously the busiest quarter on record – and up 34% year-on-year from Q1 2021.
The number of new plans agreed reached 12,174 in Q1 2022, a 21% increase year-on-year from 10,030 in Q1 2021 which was down 9% from the previous year as a result of pandemic conditions.
The data shows that drawdown lifetime mortgages remained the most popular option with new customers (54%), while 46% opted for a lump sum lifetime mortgage.
Q1 2022 saw 9,450 existing customers with drawdown lifetime mortgages return to withdraw funds from their agreed reserves. This was up from 7,571 in Q4 2021 and 5,566 in Q1 2021 but remains below the pre-pandemic peak of 9,805 in Q1 2020 with this area of the market having been the most subdued in the last two years.
Further advances were agreed for 1,771 plans between January and March 2022, as customers sought extensions to existing plans to unlock additional property wealth.
David Burrowes, chair of the Equity Release Council, commented: “The popularity of equity release so far this year is the natural result of modern products offering greater flexibility and a property market where growth has far outstripped inflation, alongside an ageing population.
“After two years where customer numbers have been subdued by the pandemic, realising gains from rising house prices can make a major difference to people's quality of life.
“Not only are more people considering equity release, but they are doing so for many different reasons and helping old and young alike to fund everyday costs and major life events.
“Innovation has made equity release products more adaptable to customers’ changing circumstances. Our standards mean lifetime mortgages remain the most secure type of retirement home finance, with customers protected from interest rate rises, repossession and passing on debt due to negative equity.
“However, it remains vital that decisions are carefully considered through both a long-term and short-term lens, with family input wherever possible and with financial and legal advice in every instance.”
