More people are dipping into their properties as a source of wealth, data from the Equity Release Council shows.
In Q2 2025 there was a 10% increase in total lending when compared to Q2 2024 (£578m).
This was driven by new lump sum mortgage customers taking on average £126,422, or 14% more than in Q2 2024 (£110,969).
This was despite there being a quarter-on-quarter drop in lending, mirroring the contraction in the residential sector.
David Burrowes, chair of the Equity Release Council, said: “Growth which continues to be driven by new borrowers accessing greater amounts of housing equity to manage debt, boost income and support their wider families.
“While the equity release market face some of the same challenges seen in the residential mortgage market, new lump sum and drawdown loans are up as customers take advantage of stable long-term house price growth to support their later life finances.
“An approach which is only likely to grow in the future with Fairer Finance predicting that by 2040, over half of UK households (51%) are expected to require housing wealth to support their spending needs in later life and retirement.”
The number of plans taken out remained static quarter on quarter, but there was a slight increase in the volume of new plans (+2%) and total plans (+1%), when compared to 2024.
Further advances – which make up less than 7% of the total amount borrowed – saw a 40% year on year increase in plans as existing customers chose to take advantage of house price increases and additional product flexibilities to borrow more.
Burrowes added: “The later life lending market will inevitably grow as more customers look to their housing wealth to boost retirement income and meet care needs.
“We need to be ready and resilient to build upon strong advice standards, product innovation and a commitment to support a wider range of customers as this provides significant opportunities for the market.”
