Equity release industry sees quarterly increase in activity

June saw highest equity release activity of 2023 so far

Data from the Equity Release Council reveals there was a rise in equity release activity during the second quarter of this year.

The figures in the council’s Q2 2023 market report show that the number of active equity release customers rose to 17,028. That’s a 2% increase on the figures seen in the first quarter of the year.

In addition to this, new customer numbers rose to 2,462 in June – a 23% increase on April. Monthly activity in June also increased, reaching its highest point of the year to date.

Homeowners unlocking one fifth of home’s value upfront

The report also reveals that when it comes to product choice, new customers are increasingly choosing drawdown lifetime mortgages (52%). This allows homeowners aged 55+ to take an initial cash amount whilst ringfencing a larger cash reserve for future use. 

Of the homeowners who choose a drawdown plan, the report finds that the first cash withdrawal from their plan currently averages £59,294. With UK house prices averaging £286,000 in May 2023 according to the Office of National Statistics, it equates to homeowners unlocking one fifth of their property value to boost their finances.

The remaining 48% of new customers opted for a single lump sum plan. In contrast, last year in Q2 2022, the product split was 45% drawdown and 55% lump sum.

Customers borrow £664m in Q2 2023

The report reveals that total equity release lending for the quarter came to £664mn. Though a sizeable sum, it’s a slight drop on lending in the first quarter of 2023.

However, customers opting for drawdown plans are likely to access additional borrowing in the future. These plans enable them to access the tax-free cash they need for now; then unlock further funds from their reserve in the future.

Can we help with your equity release enquiry?

If you are thinking about tapping into your property wealth with equity release then do get in touch with us. Equity release is typically a lifetime commitment, so it’s vital you make the right decision for you.

Remember, all the initial advice and information you receive from our selected equity release advisers is given free of charge to help you explore your options. Only if you choose to go ahead with a plan will you receive a fee for advice, which can be paid from the money you release from your home.

Call the team today on 0808 178 3055, or request a free callback here for a time that is convenient for you. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn