Updated framework responds to market growth and rising need for flexible retirement finance
The Equity Release Council has announced a significant update to its industry standards, unveiling a new Consumer Charter and introducing a sixth Product Standard aimed at enhancing protections for later life borrowers.
The revised guidelines, effective from today, May 6, follow a year-long review process involving eight working groups and a wider consultation with members and stakeholders. The goal was to make the standards easier to understand and more accessible, while maintaining a high bar for consumer protection.
The new Consumer Charter sets out what customers can expect when dealing with council members, including assurances of a process that is tailored, transparent and focused on achieving suitable outcomes for individuals.
“Customers look to the Equity Release Council to give them confidence to explore whether accessing housing wealth is right for them and the Consumer Charter clearly outlines what they can expect from our members,” said Michelle Highman (pictured), chair of the Equity Release Council’s standards committee.
A key addition to the standards is the sixth Product Standard, which expands on existing provisions for customers who move into care. Previously, early repayment charges (ERCs) were waived if a customer entered a formal care home. The new rule extends this to include those receiving care from relatives, as long as the customer has a medical certificate confirming the care arrangement.
The Council noted that with the UK’s population aged 85 and older projected to rise by 62.7% by 2043, it is critical that lending solutions remain flexible and appropriate for people’s evolving needs in retirement.
The council, which introduced its first product standards in 1991, says the update is part of its ongoing efforts to build trust and ensure robust safeguards in the equity release market. Nearly a million customers have accessed housing wealth using products underpinned by its standards over the past three decades.
Total lending in the first quarter of 2025 reached £665 million, a 32% increase compared to the same period last year, according to the latest council data. The market’s growth trend has now extended for four consecutive quarters.
All members of the Council must comply with the updated standards, which include provisions on interest rate clarity, lifetime occupancy rights, the option to move home, and a no negative equity guarantee. Customers must also have the right to make repayments without penalty, depending on their plan.
Industry figures have responded positively, though some highlighted the need for broader adoption.
“We welcome the council’s commitment to reinforcing good practice across the sector, but standards alone are not enough,” said Will Hale, chief executive of Key Later Life and Air. “Despite the well-intentioned efforts of the council, and a number of iterations of the standards, our experience suggests that there is still more work to be done if the sector is to fulfil its potential in helping customers appropriately use their housing wealth to support their wants and needs in later life.”
Paul Carter, chief executive of Pure Retirement, said the release of the Equity Release Council’s updated standards underlines the later life sector’s commitment to self-development and to generating the best outcomes for consumers.
“The inclusion of a consumer charter is a fantastic addition to an area of financial services that already strives to consistently put customers first, and will hopefully afford consumers an additional sense of reassurance by the way it clearly sets out what those exploring their options should expect during the advice process,” he added.
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