Latest Equity Release Council Report: equity release lending gains momentum

Q3 2024 sees 6% rise in lending and growth in withdrawal amounts

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The Equity Release Council’s Q3 2024 report reveals positive momentum, with total lending increasing to £615 million in the last three months. That’s 6% higher than the previous quarter. 

The continuing rise indicates growing interest in equity release from homeowners aged 55+ who are looking to boost their financial situation.

Market growth reflects increase in demand

The Q3 2024 report highlights continued growth in new customers, with nearly 5,370 new plans agreed upon from July to September 2024, a 2% increase on the previous quarter. It marks the first time since before the mini-budget of September 2022 when the equity release industry has seen growth across two successive quarters. 

The report found that the average loan amount increased slightly in Q3. Homeowners who chose a lump sum lifetime mortgage typically accessed around £111,618 – an 18% increase on the previous year. For those opting for a drawdown lifetime mortgage, the average initial withdrawal was about £69,952, with an average additional £49,747 set aside for future use if needed.

David Burrowes, Chair of the Equity Release Council, said: “Behind these improving numbers are reports from both advisers and providers alike that consumer confidence is steadily returning.

“That may not translate into an uninterrupted upwards trajectory from here, but we know there are many households who have decided that releasing equity is right for them and are now focused on ensuring the timing is also right.”

Steady house price increases sees more returning customers

Additionally, there was an 8% quarterly increase in existing customers who took further advances on their loans. According to the Equity Release Council, the availability of sufficient equity in their homes to fund these advances is a sign that people are benefitting from a consistent rise in UK house prices since February 2024.

Equity release: an attractive option for later life

For many retirees, equity release offers a practical solution to unlocking home equity without needing to downsize. 

David Burrowes has remarked on the most common uses for equity release in the last quarter, pointing out: “Housing wealth continues to play a multi-purpose role in people’s financial plans, with mortgage refinancing, gifting and home improvements all common motivations for customers at the moment, alongside topping up retirement income.”

However, it’s important to remember that equity release will reduce the inheritance left behind and may impact estate values. Therefore, prospective customers are encouraged to seek qualified advice to ensure equity release is the right choice for their financial situation.

If you are thinking about unlocking some of your property wealth with equity release, then do get in touch. Call us on 0808 178 3055 and we’ll arrange a no-obligation appointment with one of our selected advisers, who can confirm your eligibility for equity release and look for the best equity release rates from leading providers. 

If you’re unable to talk now, request a call back and we’ll call when it’s convenient to you. You can also get a quick estimate of how much money you could unlock from your home with our free equity release calculator.

Source

Q3 2024 Equity Release Council Report: Council publishes Q3 2024 lending figures. Equity Release Council. Accessed 25 October 2024.

Read more:

What is the Equity Release Council?

How is equity release regulated?

What is equity release?

What are the latest equity release interest rates?

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