Last week, the Council published its Q4 and full-year 2025 market data, showing that despite ongoing pressures from higher interest rates and cautious consumers, the equity release market continued to build momentum throughout the year. With total lending rising to £2.57bn and steady growth recorded in the final quarter, the figures highlight renewed confidence and sustained demand across the later life lending sector. Read the full press release and report here and hear from industry experts as they share their insights and reactions to the latest figures below.
Paul Carter, CEO of Pure Retirement: “The latest figures from the Equity Release Council demonstrate the extent to which lifetime mortgages continue to fulfil the needs of over-55s. The rising average lump sum borrowing on both an annual and quarterly basis demonstrate the confidence new customers have in releasing the equity in their homes, while the increasing levels of people taking out further advances underlines how comfortable those who’ve already taken out equity release are in returning to release additional funds.
The quarterly increases in customer numbers are also positive, but the fact that 2025 as a whole saw a reduction on an annual basis points towards the work needed to ensure later life lending truly becomes a mainstream solution going forward, especially as Canada Life’s recent research has suggested that financial advisers are failing to mention equity release as an option in 93% of conversations with home owners about retirement. With lifetime mortgages clearly meeting a very real societal need among those utilising them, the latest Council figures should spur us on as a sector to ensure they’re part of widespread financial planning in 2026 and beyond.”
Mark Gregory, Founder and CEO of Equity Release Group: “The Equity Release Council’s latest figures reflect what we’ve also been seeing on the ground for a while now and that is that demand in this market isn’t fading but evolving. In 2025, Equity Release Supermarket delivered a 16% uplift in completed cases year on year, showcasing that demand is being driven by structural change rather than short-term market conditions, hence there is a real underlying need for equity release.
“More people today are reaching later life still carrying mortgage debt, often on fixed or reduced incomes, and trying to make their money last longer. When you combine that with longer life expectancy and the slow demise of defined benefit pensions, it’s no surprise that homeowners are starting to look at their property wealth alongside pensions and savings, not instead of them.
“However, growth alone is not the only story here. What’s evolved the most is how people want to access advice. Growth hasn’t come from pushing a single product or relying on one route to market. It’s come from giving people more choice in how they engage, the personalisation, the choice and supporting that with best-in-class advice and clear consumer duty safeguards.
“That’s what we’ve seen reflected in our channel mix – consumers are now accessing and researching products in a variety of ways. smartER™ now accounts for almost a fifth of our business, and by expanding partnerships with organisations such as StepChange, we’ve been able to reach a broader audience, including customers who may not previously have realised this was an option.
“We know digital engagement works but only when it’s paired with quality advice, clear suitability, and the kind of robust assessments that protect customers and support good outcomes.
“As demand broadens in 2026, at Equity Release Supermarket, we expect more customers to arrive better informed and more comparison-led, which will reward firms that communicate clearly, set expectations early, and keep the process straightforward from first enquiry to completion.”
Dave Harris, CEO of more2life: “An 11% annual rise in equity release lending is welcome and shows that demand for, and understanding of, lifetime mortgages is growing among both consumers and advisers. It is also encouraging that four in five advisers expect further lending growth in 2026.
“However, these figures also hide a bigger issue. Despite the rise in lending value, the number of new customers grew by less than 1% year-on-year. Lifetime mortgages still account therefore for less than 10% of a later life lending market worth around £25bn a year. Given the range of products now available, that gap feels hard to justify.
“We believe too many over-55 homeowners, who could benefit from modern lifetime mortgages, are still not seeing them as part of their advice journey. Products have changed. Many now allow interest to be fully or partly paid, offer zero early repayment charges, and continue to provide certainty of tenure, fixed rates for life and a no negative equity guarantee. These are not fringe options. They sit alongside RIOs and mainstream later life mortgages and should be considered in the same conversation.
“There is also a clear access issue. Many advisers still do not cover later life products themselves and that can limit outcomes if referral routes are not in place. Forming strong relationships with trusted specialists should be standard practice, not the exception, if advice is to reflect the real choices available to older borrowers.
“The FCA’s ongoing later life lending study is an important step, particularly around holistic advice. But advisers do not need to wait for regulation to change. The profession can act now by making sure every customer is assessed across all suitable options. Demand is clearly there. The challenge now is to ensure advice keeps pace, so more customers can access solutions that genuinely support their later life goals.”
Lorna Shah, managing director, retail retirement at L&G: “Property wealth can play an important role in supporting people’s retirement income and helping them meet their long-term goals.
“Our latest data highlights that home improvements remain the most popular use for equity release, while fewer customers are paying off mortgage debts with the equity they have in their home.
“As a lender, we work closely with advisers and the broader industry to ensure that people looking to access property wealth make informed choices and give proper consideration to all of the options available to them.”
The views expressed in contributed articles are those of the authors and do not necessarily reflect the views of the Council.
