The latest figures from the Equity Release Council reveal an 11% rise in lending, up to £2.57 billion in 2025 from £2.3 billion in 2024.
A quarter of advisers (26%) responding to the ERC’s latest survey said customers are using equity release to clear mortgages balance, with 21% going towards home improvements, 13% given as gifts to family members, 6% used for holidays and 4% using equity to fund large purchases such as a car.
“Growth of 11% underlines the increasingly important role housing wealth is playing in supporting financial resilience and choice in later life,” said Jim Boyd, chief executive of the Equity Release Council.
“It reflects something far bigger than short-term market movements – equity release is proving vital to meeting people’s social and economic needs. Modern products are more flexible and secure than ever and, for many homeowners, accessing housing wealth is now a core part of their retirement planning, helping them enjoy financial freedom and a better quality of life.
“Releasing property wealth now supports around £1 in every £90 spent by retired households.”
The ERC’s latest figures, covering Q4 2025, reveal total lending of £632 million – a 1.6% increase from the same period in 2024.
The average release was £123,174, a 5.7% year-on-year increase.
Four in every five of the advisers polled by the ERC said they expected to see more lending in 2026 than in 2025, with just 2% predicting a fall.
Increasingly, releasing equity is part of homeowners’ retirement plans,” said ERC chair David Burrowes.
“Almost four in every ten future retirees (38%) are on track for a retirement income below the Pensions UK ‘minimum standard’. Demographic and economic pressures mean the demand is there and likely to grow. Innovations in product design are making modern equity release more flexible and more secure, making it more attractive to consumers.
“The Council also sees sustained long-term growth being supported by increased collaboration across the later life lending sector and regulatory engagement. In Q1 of 2026, the Financial Conduct Authority launches a focused later life lending market study, examining how mortgages and property-based solutions can better support consumers borrowing into retirement.
“This is an important step which reflects the reality that borrowing in later life is becoming more common and that the market must continue to evolve to deliver good consumer outcomes. That regulatory focus, combined with collaboration and continued product innovation, gives us confidence in the sector’s long-term direction. We have never had a better opportunity to bridge the retirement later life funding gap.”
Mark Gregory, founder and CEO of Equity Release Group, said the figures reflect what advisers have been seeing on the ground: “Demand in this market isn’t fading, but evolving.”
He added:
“In 2025, Equity Release Supermarket delivered a 16% uplift in completed cases year on year, showcasing that demand is being driven by structural change rather than short-term market conditions, hence there is a real underlying need for equity release.
“More people today are reaching later life still carrying mortgage debt, often on fixed or reduced incomes, and trying to make their money last longer. When you combine that with longer life expectancy and the slow demise of defined benefit pensions, it’s no surprise that homeowners are starting to look at their property wealth alongside pensions and savings, not instead of them.”
Sadna Zaman, home finance proposition manager at Canada Life, agrees that the figures highlight the increasing recognition of property wealth in retirement planning.
She said:
“As life expectancy rises and pension savings are stretched further, later life lending is playing a valuable role in helping homeowners maintain their income and achieve greater financial flexibility in retirement.
“Last year we saw a marked shift in the conversation around the role of property wealth as a critical part of the toolkit for retirement planning, driven by the FCA’s review of the mortgage market.
“It has been hugely positive to see the regulator focus on the potential of the later life lending sector to meet the evolving needs of customers. With a forward-looking market study and a review of advice rules scheduled for early this year, the regulator has set the stage for a busy year of policy development and engagement.”
