The equity release market remains broadly stable with negligible changes to lending and customer numbers compared with the previous quarter. But, reported the Equity Release Council (ERC) in its latest quarterly figures, lending was down 7% year on year.
The figures suggest the equity release market is showing “resilience” said John Godfrey, chair of the ERC, despite wider pressures on household finances.
Total lending reached £591 million during Q3 2026, down 1% on the previous quarter (£597m). Overall customer numbers increased 1% to 13,611.
The number of new customers over the same period rose 1% to 5,357, while returning drawdown customers increased 3% to 7,169. Further advance customer numbers fell 10% to 1,085.
Comparisons to 12 months ago were less favourable with total lending down 7% compared with Q3 2025, while overall customer numbers fell 6% year on year. New customer numbers were 3% lower year on year, and returning drawdown customers were down 7%.
Amongst the adviser community the latest sentiment survey paints a “mixed picture” said the ERC. 42.5% of firms reported an increase in customer enquiries, while a third reported applications rising and a third reported them falling when compared with the second quarter of 2026. Case completions were under greater pressure, with 40% of firms reporting a decline.
Borrowing costs and the amount customers can release were both issues cited as reasons for not going ahead. Among firms whose customers chose not to take out equity release in Q3, 80.6% said rates were too high, while 61.1% cited customers being unable to secure the loan-to-value they needed. A further 36.1% said they had advised customers to wait.
The ERC said the latest average borrowing patterns continued to reflect a “cautious approach to accessing housing wealth.” Average new lump sum borrowing fell 1% over the quarter to £112,822, while average initial drawdown borrowing decreased 8% to £58,473.
Average drawdown reserve facilities increased 3% to £58,497, suggesting customers continue to value having access to future borrowing rather than taking the full amount upfront they added.
Average borrowing by returning drawdown customers remained broadly unchanged at £13,213. Average lump sum further advances rose 4% to £33,194, while the average initial drawdown further advance increased 7% to £31,276.
Commenting on the report Jim Boyd, chief executive officer of the Equity Release Council, said: “The adviser survey reinforces the picture of a market where demand remains, but in an economically challenging environment converting interest into completed business is proving more difficult. Borrowing costs and loan-to-value constraints continue to affect customers’ decisions, while some are choosing to wait rather than proceed immediately.
“Consumers are still considering how housing wealth could support their finances, even if they are taking longer to make decisions. With the Budget approaching on 28 October, some customers may also want greater clarity about the wider outlook before committing. We will be watching closely how confidence and adviser activity develop through the final quarter of the year.”
