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