Older homeowners turn to property wealth amid economic uncertainty
The UK’s equity release sector saw total lending reach £639 million in the third quarter of 2025, a slight increase from £636 million in the previous quarter and a 4% rise compared to the same period last year.
Despite a reduction in the number of new plans, the average amount released per customer grew, indicating that older homeowners are drawing on property wealth to address household finances, assist relatives, and prepare for future expenses amid ongoing economic pressures.
Feedback from advisers, collected by the Equity Release Council, suggests that while many clients remain confident, some are postponing decisions. Three-quarters of advisers reported that clients are waiting for greater interest rate stability before proceeding. Those who do go ahead are primarily focused on repaying mortgages or managing debts as part of broader financial strategies.
The data points to a market that is both mature and stable, with borrowers making decisions based on long-term property value expectations. The average loan size rose for both new and existing customers, with notable growth in drawdown and further advance activity. Lump-sum lending also surpassed drawdown for the first time since late 2022, although drawdown remains a key tool for flexible financial planning.
The most recent quarterly data indicate that the equity release market is maintaining its upward trajectory, building on the 10% year-on-year increase in total lending recorded in the preceding quarter.
“This quarter’s performance reflects a resilient, confident and responsible market operating in challenging conditions,” said David Burrowes (pictured right), chair of the Equity Release Council. “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 Legal & General, said the Equity Release Council figures point to a stronger, more mature market and reflect how housing equity is becoming an increasingly important contributor to retirement planning.
“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,” she said. “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. 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.”
For Paul Carter, chief executive of Pure Retirement, the uptick in total borrowing highlighted in the Q3 figures “is gratifying and, when allied with the increase in average loan amounts, underlines consumer confidence in utilising housing wealth to achieve financial goals.”
Carter, however, noted that the reduction in the number of plans being taken out 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,” he said. “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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
