Equity release: Quarterly trend summary (Q3 2025)

Summary: Key equity release trends for Q2 2025

• Total lending: £639 million
• Year on year change: +4% (from £615 million in Q3 2024)
• New plans completed: 4,932
• Total customers (new and returning): 13,158

Resilient quarter with modest lending growth

In Q3 2025, older homeowners accessed £639 million of housing equity, up 4 percent from £615 million in Q3 2024. This growth came even though the total number of customers fell to 13,158, an 8 percent decrease compared with a year earlier. The figures show that the equity release market remained resilient, with fewer customers releasing larger sums on average to meet their financial needs in later life.

Key figures: How the equity release market performed

• Total lending: £639 million
• Year on year change in lending: +4%
• Quarter on quarter change in lending: around 0% (from £636 million in Q2 2025)
• Total plans: 13,158
• New plans: 4,932
• Returning drawdown customers: 6,999
• Further advance customers: 1,127
• Typical new lump sum: £116,507
• Typical new initial drawdown: £83,906
• Typical new drawdown reserve: £71,044

Higher average loans offset lower customer numbers

The Equity Release Council data shows that total lending increased despite fewer customers using equity release. Compared with Q3 2024, customer numbers fell by 8 percent, but average amounts released rose. New lump sum plans saw an average release of £116,507, 4 percent higher than a year earlier, while new initial drawdown releases increased to £83,906, up 20 percent year on year. Average reserves on new drawdown plans also grew sharply to £71,044, a 43 percent annual increase. This pattern indicates that those who chose to proceed in Q3 often released more from their homes, even as some potential customers waited for greater confidence around interest rates and the wider economy.

Why homeowners used equity release in Q2 2025

• Clearing or reducing existing mortgage balances
• Managing other debts within longer term financial plans
• Supplementing income or covering rising living costs
• Accessing further advances on existing plans where needed

Customers used equity release to manage debt and long term finances

Adviser feedback collected by the Equity Release Council suggests that customers who chose to go ahead in Q3 2025 were focused on using equity release in a planned way, particularly to clear mortgages or manage other debts over the long term. At the same time, many advisers reported that some potential customers were deferring decisions while they waited for greater rate stability. Further advances rose slightly year on year, but still represented a relatively small share of total activity, indicating that existing customers are being selective about drawing more from their plans.

Market activity: Demand growth and product flexibility

• Total lending up 4 percent year on year, broadly flat quarter on quarter
• Total customer numbers down 9 percent from Q2 2025 and 8 percent year on year
• New plans down 7 percent quarter on quarter and 8 percent year on year
• Drawdown share of new plans: 49 percent, with lump sum slightly ahead for the first time since Q4 2022

Fewer plans completed but lump sums and drawdowns grew in size

Q3 2025 saw fewer new, returning and further advance customers than both the previous quarter and the same period last year. New plans fell to 4,932 and returning drawdown customers to 6,999, while further advances were broadly stable year on year at 1,127. Despite this decline in customer numbers, lending still increased because both lump sum and drawdown borrowing grew in size. For the first time since late 2022, lump sum plans were the preferred choice over drawdown, although drawdown customers who did proceed released more both initially and through larger reserve facilities. This combination points to a market where customers are cautious about entering new plans, but those who do are addressing substantial financial needs.

What this means for homeowners exploring equity release

• Equity release remains available, with measured growth driven by larger loans rather than more customers
• Borrowers are using equity release more selectively, often to tackle significant debts or financial pressures
• Interest rate and house price uncertainty make personalised advice even more important than ever

Careful planning is essential as borrowers release larger amounts

For homeowners thinking about equity release, the Q3 2025 figures show a market that is growing steadily in value but serving a slightly smaller group of customers. Those who do go ahead are releasing higher amounts, often to clear mortgages or manage debts as part of a wider plan for retirement. At the same time, official house price statistics show annual price growth of around 2 to 3 percent across the UK, which may help support eligibility while also reminding consumers that property values can fluctuate.

Given the higher average loan sizes and ongoing uncertainty around interest rates, it is especially important for anyone considering equity release to seek regulated advice. An adviser can help compare lump sum and drawdown options, explain product safeguards and repayment features, and assess whether equity release is the right choice or if an alternative might be better suited to the customer’s goals.

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.