Equity release lending continues to grow

Latest figures from The Equity Release Council have shown that the equity release market space continued to demonstrate resilience in Quarter 3 2025, with total lending rising to £639 million, up from £636 million in Q2 and 4% higher than the same period in 2024.

While total plan numbers were lower this quarter, customers released larger sums on average. This reflects measured, advice-led financial planning as older homeowners use housing wealth to manage household budgets, support family members, and plan for future needs in a challenging economic environment.

Adviser feedback gathered through the Council’s quarterly survey paints a picture of a confident yet cautious customer base. Some customers have deferred decisions with three-quarters of advisers* reporting that this is due to waiting for rate stability. Those proceeding are prioritising clearing mortgages or managing debt within longer-term financial plans.

Overall, sentiment across the advice community remains positive. The data highlights a mature, stable market where borrowers are acting responsibly and with confidence in long-term property values.

Average loan sizes increased significantly across both new and existing customers, particularly drawdown and further-advance activity. Additionally, lump-sum lending edged ahead for the first time since late 2022, while drawdown continues to play a key role in enabling flexible long-term planning.

David Burrowes, Chair of the Equity Release Council, said “This quarter’s performance reflects a resilient, confident and responsible market operating in challenging conditions. 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.”

Nick Flynn, Retirement Income Director, Canada Life said “It is encouraging to see the equity release market continue its path of steady growth, even in the face of ongoing economic pressures.

“Recent tax changes and the upcoming Autumn Budget may be prompting individuals to take stock of their financial planning strategies. Our data shows a rising number of customers are using equity release as part of their estate planning – helping to support loved ones through gifting and managing potential future inheritance tax liabilities.

“The flexibility of later life lending makes it a valuable tool for older homeowners planning their finances in retirement. With life expectancy rising, equity release is becoming an increasingly important pillar of later life financial planning, enabling individuals to unlock wealth to enhance their financial security in retirement.”

Simon Webb, Managing Director of capital markets and finance at LiveMore, said “Today’s data from the Equity Release Council reveals a positive increase in borrowing, with £639m lent this quarter, up from £3m on last month and £24m on Q3 last year. Average loan sizes also increased significantly across both new and existing customers. However, a decline in the total number of plans this quarter highlights that many individuals are waiting for greater rate stability – as is the case in the wider mortgage market.

“But it is worth nothing that equity release is just one piece of the later life lending puzzle. There is a myriad of other later life lending options available to over-50’s, including Retirement Interest Only, standard interest only, capital and interest repayment, and term-based mortgages. In Q2, the Later Life Mortgage Lending Update from UK Finance showed both the value and volume of this wider later life lending category was up year on year.

“We can no longer look solely at equity release borrowing as an indicator of growth in the wider later life lending market, as with a greater understanding of their options, many are now looking to alternative products that better suit their needs.”

MARKET ACTIVITY Q3 2025
Overall activity	Q3 2024	Q2 2025	Q3 2025	Quarterly change	Annual change
Total lending	£615m	£636m	£639m	0%	+4%
Total plans	14,281	14,404	13,158	-9%	-8%
New plans	5,370	5,319	4,932	-7%	-8%
Returning drawdowns	7,796	7,640	6,999	-8%	-10%
Further advances*	1,115	1,445	1,127	-22%	+1%

AVERAGE LOAN SIZES
Average loan value	Q3 2024	Q2 2025	Q3 2025		Quarterly change	Annual change
New lump sum	£111,618	£126,422	£116,507		-8%	+4%
Initial drawdown	£69,952	£65,856	£83,906		+27%	+20%
Drawdown reserve	£49,747	£53,338	£71,044		+33%	+43%
Returning drawdown	£12,768	£13,150	£14,549		+11%	+14%
Lump-sum further advance	£28,570	£30,180	£41,069		+36%	+44%
DD initial further advance*	£25,759	£27,303	£30,331		+11%	+18%
DD reserve further advance*	£10,030	£6,545	£6,273		-4%	-37%
Product choice among new customers	Drawdown: 49%			Lump sum: 51%