The equity release market saw lending rise to £639m in Q3 2025, up from £636m in Q2 and 4% higher than Q3 last year, according to the Equity Release Council.
While the number of plans was down 9% on the quarter, customers released higher amounts on average.
Adviser feedback showed most customers were confident but cautious, with three-quarters of advisers saying some people held off for rate stability.
Those going ahead were focused on clearing mortgages or managing debt over the long term.
Average loan sizes increased across new and existing customers, with drawdown and further advance activity seeing the biggest rises.
For the first time since 2022, lump-sum lending edged ahead of drawdown, though drawdown remains a key choice for flexible 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.”
Burrowes added: “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.”
Reaction:
Nick Flynn, retirement income director at Canada Life:
“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.”
Paul Carter, CEO at Pure Retirement:
“The uptick in total borrowing highlighted in the latest quarterly figures is gratifying and, when allied with the increase in average loan amounts, underlines consumer confidence in utilising housing wealth to achieve financial goals.
“However, the reduction in the number of plans being taken out also highlights the ongoing need to support those who are on the fence, by continuing to provide a consumer-focused environment through effective product and service offerings.
“Our own recent research has highlighted the widening demographic profile of our new lifetime mortgage customers, including notable increases in activity on a joint lives basis, and from both younger age brackets and from single males.
“This serves to underline the underlying potential that remains in the market, and we look forward to working towards ensuring lifetime mortgages continue to offer an effective solution that meets the needs of as many people as possible in 2026.”
Kay Westgarth, head of retirement distribution at Aviva:
“The Q3 figures reflect a resilient equity release market that continues to support older homeowners in navigating economic uncertainty.
“The rise in average loan sizes shows that customers are making considered, advice-led decisions to unlock property wealth for a range of needs, from managing household budgets to supporting family.
“This is a mature market, underpinned by responsible borrowing and strong adviser support.”
