Equity Release Market Grew 11 per cent in 2025

• Lending rose from £2.3bn in 2024 to £2.57bn last year
• 40% of borrowers using equity release to pay for home improvements (21%), holidays (6%), cars (4%) – or gifting to the family (13%) poll shows

The equity release market grew 11 per cent in 2025, according to the latest research from the Equity Release Council (the Council).

Total annual lending increased from £2.3 billion in 2024, to £2.57 billion in 2025.

The Council’s market data is compiled from actual whole-of-market returns, making it the UK’s definitive equity release data.

Equity release allows older people to access the wealth in their homes, without needing to sell or move. Lifetime mortgages make up more than 99 per cent of the market. These mortgages let people borrow against their homes without making repayments unless they choose to. The loan and interest is paid when the customer dies or goes into long term care.

Chart: Total equity release lending, by year

More than a quarter of advisers responding to the Council’s latest survey (26 per cent) say customers are now using equity release to clear mortgages balances – while 40 per cent say equity release is being put towards positive uses such as paying for home improvements (21 per cent), holidays (6 per cent), other large purchases such as a car (4 per cent) – or gifting to the family (13 per cent)*.

Jim Boyd, chief executive of the Equity Release Council, said: “Growth of 11 per underlines the increasingly important role housing wealth is playing in supporting financial resilience and choice in later life. 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.”

Q4 2025 PERFORMANCE

The Council’s quarterly market numbers for Q4 2025, the latest available, show the sector has continued to grow, with £632m worth of total lending. This is a 1.6 per cent increase compared to Q4 2024 (£622m).

The average release rose to £123,174 in Q4 2025, an increase of 5.7 per cent year-on-year. 1,468 customers returned for further advances this quarter, compared to 1,411 in Q4 2024.

LOOKING FORWARD: 2026 AND BEYOND

Four in every five of the advisers polled by the Council (80 per cent) forecast more lending in 2026 than in 2025 – while only 2 per cent forecast a fall (the rest forecast no change). A similar number suggested they would see overall customer numbers grow in 2026, too.

David Burrowes, chair of the Council, said: “Increasingly, releasing equity is part of homeowners’ retirement plans. Almost four in every ten future retirees (38 per cent) 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.

“The Council also sees sustained long-term growth being 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.

“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.”

The Equity Release Council is the representative trade body for the equity release sector. Since 1991, more than 680,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

The research follows December 2025’s Extraordinary General Meeting of the Council where it was agreed the Council’s remit should be expanded across later life lending. Following, a senior leadership restructure was announced to support this evolution. As part of this, Kelly Melville-Kelly was promoted to the newly created role of Deputy CEO.

For further information about the Council, please visit www.equityreleasecouncil.com.

To read the full report click here.

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*Based on a quarterly annual survey of our adviser members during January 2026 (with 59 responses).

About the Council: The Council (www.equityreleasecouncil.com) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals. It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 680,000 homeowners have accessed over £50bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

About Later Life Lending: The FCA recognises the growing role of later life mortgages, noting that: “Looking ahead, more mortgage holders will borrow beyond state pension age. Given this, and with projections of under-saving into retirement, access to later life mortgages could be key to helping people achieve their financial goals in later life.” Fairer Finance estimates over 50 per cent of homeowners are set to use some of their property wealth to fund their retirements by 2040.

More information: [email protected] | 079 0320 7726 or [email protected]