Equity release borrowers take larger loans to fund family and household in a ‘challenging economic environment’

Older home owners may be using equity release to manage household budgets, support family members, and plan for future needs in a challenging economic environment according to the latest Equity Release Council (ERC) quarterly figures. 

In quarter 3 2025, total lending rose to £639m, up from £636m in Q2 and 4% higher than the same period in 2024. Although the total number of plans were lower in the third quarter of the year, the sums released were larger; an indicator of older homeowners use housing wealth to support loved ones and provide for their own retirement.

The figures demonstrate the importance of equity release in later life planning said David Burrowes, Chair of the Equity Release Council:

“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.

He added the sector continued to ‘demonstrate resilience, with robust consumer safeguards and advice standards at its core.’

Feedback from equity release advisors suggests people have been waiting for rate stability from the Bank of England before proceeding. Average loan sizes increased significantly across both new and existing customers, particularly drawdown and further-advance activity. Additionally, lump-sum lending edged ahead for the first time since late 2022, while drawdown continues to play a key role in enabling flexible long-term planning.

It’s a sentiment shared by Lorna Shah, Managing Director, Retail Retirement, L&G:

“These figures point to a stronger, more mature market, reflecting how housing equity is becoming an increasingly important contributor to retirement planning. They also show that more people are using lifetime mortgages to release larger sums, demonstrating that property wealth is being used to fund significant financial decisions. Our own data highlights that customers draw on equity release for a wide range of reasons: from home improvements, and supporting loved ones, to managing day-to-day finances. We expect more people to unlock the £3.7 trillion held in housing equity over the coming decades.

“It’s vital that advisers help clients explore all available options to find the one that best suits their circumstances. As a lender, we work closely with advisers and the wider industry to ensure customers make informed choices that meet their needs. While equity release isn’t right for everyone, it’s crucial that conversations about retirement income take a holistic view, considering property wealth alongside other assets.”

Overall, sentiment across the advice community remains positive said the ERC. The data highlights a mature, stable market where borrowers are acting responsibly and with confidence in long-term property values.