Equity release: Quarterly trend summary (Q1 2025)

Summary: Key equity release trends for Q1 2025

• Total lending: £665 million
• Year on year change: +32% (from £504 million in Q1 2024)
• New plans completed: 5,342
• Total plans (new and returning): 14,350

Strong start to 2025 with lending up a third

In Q1 2025, older homeowners accessed £665 million of housing equity via equity release, up from £504 million in Q1 2024. This represents a 32 percent increase in total lending and the fourth successive quarter of market growth. Overall plan numbers were broadly stable year on year, with 14,350 plans in total, while the value released per customer increased as more new borrowers entered the market and average loan sizes grew.

Key figures: How the equity release market performed

• Total lending: £665 million
• Year on year change in lending: +32%
• Quarter on quarter change in lending: +7% (from £622 million in Q4 2024)
• Total plans: 14,350
• New plans: 5,342
• Returning drawdown customers: 7,684
• Further advance customers: 1,324
• Typical new lump sum: £127,414
• Typical new initial drawdown: £69,764

Average loan sizes increased as customers borrowed more per plan

The data shows that while the total number of plans increased only slightly compared with Q1 2024, the total amount released rose more sharply due to higher average loan sizes. New lump sum customers borrowed an average of £127,414, up 23 percent on the same quarter a year earlier and 11 percent higher than in Q4 2024. New initial drawdown amounts averaged £69,764, 17 percent higher than a year earlier, although slightly lower than in the previous quarter. This pattern suggests customers are gradually adjusting to a higher interest rate environment while still using their housing wealth to meet significant financial needs.

Why homeowners used equity release in Q1 2025

• Managing or repaying existing mortgage debt
• Boosting income and day to day finances in later life
• Supporting wider family with financial needs
• Using further advances more cautiously than in previous years

Borrowers focused on managing debt, income and family support

According to the Equity Release Council, growth in Q1 2025 was driven mainly by new customers taking larger lump sums, using housing equity to manage mortgage debt, boost income and help their wider families. At the same time, fewer existing customers drew further funds from existing plans, as seen in the 25 percent annual fall in further advance customers. This points to a cautious approach among existing borrowers to taking on additional borrowing, while new customers are more likely to use equity release as part of broader financial planning for later life.

Market activity: Demand growth and product flexibility

• Fourth successive quarter of growth in total lending
• New plans up 14 percent year on year, with total plans up 1 percent
• 53 percent of new customers chose drawdown products, 47 percent chose lump sum
• Average APR on new products launched in Q1 2025: 7.15% (up from 6.67% in Q1 2024)
• Over 1,200 products available across the market

New customers and product choice supported resilient activity

Market activity in Q1 2025 reflected a balance between growing new demand and cautious behaviour among existing borrowers. New plans increased by 14 percent year on year, while total plans were only slightly higher, because returning drawdown and further advance activity fell. Just over half of new customers chose drawdown products, while lump sum products accounted for 47 percent of new plans and saw notably higher average loan sizes. Product availability remained strong, with more than 1,200 plans on offer, although the average interest rate on new products rose to 7.15 percent, in line with higher gilt yields and broader funding costs.

What this means for homeowners exploring equity release

• Equity release continues to grow as a later life borrowing option
• Higher average loans mean decisions are increasingly significant for long term finances
• Interest rates are higher than a year ago, making product features and advice more important

Growing market highlights importance of careful advice and planning

For homeowners considering equity release, the Q1 2025 figures show a market that is expanding in value, with more new customers and larger average loans than a year earlier. This trend highlights how important it is to understand the long term impact of releasing a substantial sum against your home, particularly when interest rates are higher than in previous years. Features such as drawdown facilities, the ability to make voluntary repayments and product safeguards can help manage borrowing over time, but the right approach will depend on individual circumstances. Regulated advice remains essential to weigh the benefits, risks and alternatives, and to decide whether equity release is suitable.

About this report

This quarterly trend summary is produced to help consumers understand how the equity release market is changing over time. It is based solely on publicly available data from authoritative sources including the Equity Release Council, the Office for National Statistics and publicly reported industry analysis. The report is published shortly after each quarterly data release and is designed to present market movements in a clear, simple and accessible format for homeowners considering their options.