Advisers predict further growth
The equity release market grew by 11% in 2025, with total annual lending rising from £2.3 billion in 2024 to £2.57 billion, according to new data from the Equity Release Council.
Adviser feedback gathered by the Council indicates a broadening range of uses. More than a quarter of respondents (26%) reported that clients were using equity release to repay existing mortgage borrowing.
A larger share (40%) said funds were being channelled into what they described as positive purposes, including home improvements (21%), holidays (6%), major purchases such as a car (4%) and gifting to family members (13%).
“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. “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.”
In the final quarter of 2025, the Council’s latest available figures show that total lending reached £632 million, up 1.6% on the £622 million advanced in the same period a year earlier. The average amount released per customer increased to £123,174, a year-on-year rise of 5.7%. Further advances also edged higher, with 1,468 existing customers drawing down additional funds in Q4 2025, compared with 1,411 in Q4 2024.
Looking ahead, advisers expect activity to continue building through 2026. Four in five respondents (80%) forecast higher lending this year than in 2025, while only 2% anticipate a decline; the remainder expect volumes to be broadly unchanged. A similar pattern emerged in expectations for customer numbers, with most advisers predicting growth in client demand.
“Increasingly, releasing equity is part of homeowners’ retirement plans,” said David Burrowes (pictured right), chair of the Equity Release Council. “Almost four in every 10 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 more secure, making it more attractive to consumers.
Burrowes also expects sustained long-term growth to be supported by increased collaboration across the later life lending sector and regulatory engagement.
“In Q1 of 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,” he noted.
“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.”
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