Equity Release lending up 4% in Q2, data reveals
Data showed total lending rose to £597m, a 4% rise on the previous quarter’s £574m.
Equity release lending increased in Q2 2026, with more customers returning after a slow start to the year, according to the latest data from the Equity Release Council.
Data showed total lending rose to £597m, a 4% rise on the previous quarter’s £574m.
Customer numbers also increased by 4% to 13,489.
There were 5,307 homeowners releasing equity for the first time, up 9% on Q1, matching the same level as Q2 2025.
Further advance customer numbers rose 12% to 1,204, while returning drawdown customer numbers dropped 1% to 6,978.
Jim Boyd (pictured), CEO of the Equity Release Council, said: “It is encouraging to see this increase in activity despite the inherent challenge of continuing domestic and international uncertainty.
“New customer numbers have recovered to the same level as a year ago, while overall lending and customer activity have both increased over the quarter.
“The FCA recently described later life lending as a fourth pillar alongside pensions, savings and investments.”
Boyd added: “Today’s figures suggest that transition is already underway.
“As retirement funding becomes increasingly dependent on a mix of assets, housing wealth is becoming a more mainstream part of financial planning, supported by stronger consumer protections, greater product flexibility and high-quality advice.”
The average new lump sum dropped 6% to £113,779, but initial drawdown borrowing went up 2% to £63,642.
Average drawdown reserve facilities fell from Q1 but were 7% higher than a year earlier at £56,893.
Average initial drawdown further advances increased 11% on Q1 to £29,367, and average lump sum further advances were 6% higher than a year earlier.
More than a third (37%) of firms expected enquiries to rise in Q3, with a similar number expecting applications (35%) and completions (37%) to go up.
Only one in ten firms expected enquiries to fall, while 47% predicted application levels would stay much the same.
Some customers were waiting to see if borrowing costs fell, with 74% of advisers saying customers were holding off, and 55% saying some could not get the loan-to-value (LTV) they needed.
Almost half (47%) of firms expected rates to be lower than in 2025.
Boyd said: “The adviser survey reinforces what we are seeing in the market.
“Demand remains resilient. Rather than disappearing, many decisions are being deferred.”
David Burrowes, chair of the Equity Release Council, said: “There are no two ways about it: today’s market is very different from that of a decade ago.
“Customers increasingly want flexibility, choice and the ability to tailor borrowing around changing circumstances, which continues to drive demand for drawdown products.
“As confidence continues to improve, the market is well placed to support more people looking to incorporate housing wealth into their retirement planning.”
Burrowes added: “The priority remains ensuring consumers have access to high-quality advice and strong protections so they can make informed decisions that reflect their individual circumstances.”
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