According to the Equity Release Council’s (ERC) latest data³ for Q4 2024, over 15,000 customers were active in the market during the period – the highest number recorded since Q3 2023. Total lending in Q4 2024 topped £622m, a considerable uptick from the £525m recorded in Q4 2023.
As customers agree new plans, take drawdowns from existing plans or agree further advances (extensions) to existing plans, it seems confidence is returning to the market. Chair of the ERC, David Burrowes, says that reflects:
“The confidence that homeowners have in leveraging their property wealth responsibly.”
Marking a third consecutive quarter of growth, Burrowes added:
“The equity release market has turned a corner and there is cause for optimism. Interest rates have started to settle and if the growth seen in 2024 continues to gain momentum, 2025 will see more customers considering the option to access their housing equity using an increasingly diverse range of innovative products.”
The data highlights an increase in house prices contributed to larger loan sizes for both lump sum mortgage and drawdowns over the period. Product availability has also improved over the last year and the market has seen a rise in returning customers using further advances.
Referring to customers making use of reserve facilities to manage borrowing efficiently over time, Burrowes said this demonstrates:
“The versatility of equity release in addressing diverse financial goals, from home improvements to supplementing retirement income.”
⚠️ It is important to note that equity release isn’t right for everyone. Risks include high interest rates, reduced inheritance, impact on benefits, early repayment charges, and potential negative equity. Exploring alternatives and seeking financial advice is essential.
⚠️ Equity release and lifetime mortgages will reduce the value of your estate and can affect your eligibility for means tested benefits.
³ERC, 2025
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🚨 Data accurate as of the date of publication –03.06.2025
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q2 2025
