The equity release market remained resilient in the third quarter of 2025, with total lending rising to £639 million, up from £636 million in the second quarter, new figures from the Equity Release Council show.
The figure was also 4% higher than the same period in 2024.
While total plan numbers were lower this quarter, dropping to 13,158 from 14,281 a year earlier, customers released larger sums on average.
New lump sums rose to £116,507 in the third quarter from £111,618 in the third quarter of 2024, while average initial drawdown figures jumped to £83,906 in the third quarter, up from £69,952 in the same period last year.
The Equity Release Council said the shift reflects “measured, advice-led financial planning” as older homeowners use housing wealth to manage household budgets, support family members and plan for future needs in a challenging economic environment.
However, adviser feedback gathered through the Council’s quarterly survey found some customers have deferred decisions with three quarters of advisers reporting that this is due to waiting for rate stability. Those choosing to go ahead are prioritising clearing mortgages or managing debt within longer-term financial plans.
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.”
Nick Flynn, retirement income director at Canada Life, said: “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.”
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