UK equity release lending grew by 11 per cent in 2025

Lending grows by £270 million

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Lending across the UK’s equity release market totalled £2.57 billion in 2025. This data is from the Equity Release Council and compares to total lending of £2.3 billion in 2024. That’s a £370 million (11%) year-on-year increase.

Speaking of the data, the Council’s chief executive, Jim Boyd, said: “Growth of 11% underlines the increasingly important role housing wealth is playing in supporting financial resilience and choice in later life. 

“It reflects something far bigger than short-term market movements – equity release is proving vital to meeting people’s social and economic needs. Modern products are more flexible and secure than ever and, for many homeowners, accessing housing wealth is now a core part of their retirement planning, helping them enjoy financial freedom and a better quality of life.”

As well as data for 2025 as a whole, the Council has also published figures for Q4 (Oct-Dec) 2025. With £632 million of total lending, it’s a 1.6% increase compared to Q4 2024. Also, the average release rose to £123,174, an increase of 5.7% per cent year-on-year.

Why do people choose equity release?

Equity release is one way that people aged 55+ can access some of the wealth in their homes, without having to sell or move. The most popular form of equity release is a lifetime mortgage. This is where someone borrows money, with the loan secured against their home. 

They can make regular full or partial repayments if they wish, but most people choose not to. Instead, the loan and accrued interest is back via the sale of the home when the customer passes away or goes into long-term care.

The Equity Release Council has also reported on a survey of financial advisers, looking at the reasons their clients are choosing equity release. They say that 26% are doing so to clear their existing mortgage balance, while 21% are using the money for home improvements. 

Other reasons include gifting to family members (13%), holidays (6%) and other large purchases such as buying a car (4%).

We explore these reasons and others in our article: What can you use equity release money for?

Is equity release right for you?

If you are thinking about equity release, it’s vital that you carefully weigh up the pros and cons of equity release. Just as importantly, speaking to an adviser can help you understand your options, compare plans and decide whether it’s right for you now or in the future.

To find out if you are eligible, how much you can release, and get all the advice and support you need, talk to one of our selected advisers by calling 0808 178 3055 or request a call back.