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The UK equity release market showed steady growth in Q3 2025, with total lending reaching £639m, up from £636m in Q2 and 4% higher than the same period in 2024.
Although the number of plans fell slightly, customers were releasing larger sums on average. The trend reflects advice-led financial planning, with older homeowners drawing on housing equity to manage household budgets, support family members, and plan for future needs amid economic uncertainty.
Feedback from advisers, collected through the Council’s quarterly survey, indicates a cautious but confident customer base. Around three-quarters of advisers reported that some clients have deferred decisions while waiting for rate stability. Those moving ahead are focusing on paying down mortgages or managing debt within longer-term financial strategies.
Overall, the data points to a mature and stable market, with borrowers acting prudently while showing confidence in long-term property values.
| MARKET ACTIVITY Q3 2025 | |||||
| Overall activity | Q3 2024 | Q2 2025 | Q3 2025 | Quarterly change | Annual change |
| Total lending | £615m | £636m | £639m | 0% | +4% |
| Total plans | 14,281 | 14,404 | 13,158 | -9% | -8% |
| New plans | 5,370 | 5,319 | 4,932 | -7% | -8% |
| Returning drawdowns | 7,796 | 7,640 | 6,999 | -8% | -10% |
| Further advances* | 1,115 | 1,445 | 1,127 | -22% | +1% |
Steady annual lending growth suggests homeowners are choosing the option of equity release after careful deliberation.
| AVERAGE LOAN SIZES | ||||||
| Average loan value | Q3 2024 | Q2 2025 | Q3 2025 | Quarterly change | Annual change | |
| New lump sum | £111,618 | £126,422 | £116,507 | -8% | +4% | |
| Initial drawdown | £69,952 | £65,856 | £83,906 | +27% | +20% | |
| Drawdown reserve | £49,747 | £53,338 | £71,044 | +33% | +43% | |
| Returning drawdown | £12,768 | £13,150 | £14,549 | +11% | +14% | |
| Lump-sum further advance | £28,570 | £30,180 | £41,069 | +36% | +44% | |
| DD initial further advance* | £25,759 | £27,303 | £30,331 | +11% | +18% | |
| DD reserve further advance* | £10,030 | £6,545 | £6,273 | -4% | -37% | |
| Product choice among new customers | Drawdown: 49% | Lump sum: 51% | ||||
Average loan sizes increased significantly across both new and existing customers, particularly drawdown and further-advance activity.
Additionally, lump-sum lending edged ahead for the first time since late 2022, while drawdown continues to play a key role in enabling flexible long-term planning.
David Burrowes, chair of the Equity Release Council, commented: “This quarter’s performance reflects a resilient, confident and responsible market operating in challenging conditions. While fewer customers released equity, those who did were acting with clear financial purpose and strong support from specialist advice.
“Rising average loan sizes, and continued use of drawdown flexibility, show people are using property wealth carefully to manage costs, support family members and plan ahead.
“Equity release remains an important part of later-life financial planning. The sector continues to demonstrate resilience, with robust consumer safeguards and advice standards at its core.”
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