The latest Equity Release Council quarterly figures released today have shown a substantial market growth with a 32% lending increase compared to 2024. With this in mind, some of the leading industry names, professionals and experts have shared their views on the data.
Leon Diamond, founder and CEO at LiveMore, commented:
“Today’s UK Finance data shows that equity release lending has now grown for four quarters in a row, reaching £665 million in Q1 2025. While total customer numbers have dipped slightly on last quarter, they remain ahead of Q1 2024, driven by a rise in new borrowers and larger loan sizes.
But these figures only represent equity release – one piece of the full later life lending picture, which is also showing significant growth (data from UK Finance shows the value of later life lending was £5.6bn in Q4 2024, up 38.6% compared with the same quarter a year previously).
Later life lending is a broader market than equity release, offering everything from Retirement Interest Only and standard interest-only to capital & interest repayment and term-based borrowing to meet the diverse and evolving needs of the 50+ market. At LiveMore, we offer a full range of later life mortgage products — including but not limited to equity release — so older borrowers can explore all their options with confidence and peace of mind.”
Richard Pike, chief sales and marketing officer at Phoebus comments:
“The rise in equity release lending confirmed in the Equity Release Council’s Q1 2025 report paints a clear picture of a sector coming into its own to meet the needs of older homeowners. With £665 million of equity accessed in Q1 of 2024, a 32% increase year-on-year, it’s a signal that housing wealth is becoming more of a mainstream solution in retirement planning.
Four consecutive quarters of growth and a notable rise in average loan sizes suggest homeowners are increasingly turning to equity release to navigate financial challenges, repay mortgages, or fund lifestyle changes. With many older homeowners still navigating high living costs and interest-only mortgage maturities, tapping into property wealth is no longer a last resort – it’s becoming a strategic choice and intermediaries and IFAs should be giving this product full consideration when it comes to planning for later life requirements.”
Scott Burman, Head of Distribution at Pure Retirement comments: “The latest figures from the Equity Release Council continue to show an encouraging picture of progress within the later life lending sector, and a customer base who are increasingly prepared to take advantage of the ability to release equity in their homes at average rates comparable to residential mortgages to achieve their financial goals.
Annual growth in borrowing amounts across all product types, and across both initial and further borrowing, demonstrates the way that lifetime mortgages are catering to a diverse audience – as also evidenced by our own findings, which found that in Q1 9% of business came from owners of properties valued at £850,000 and above.
The intersection of product innovation and a customer-centric culture within the market continues to make lifetime mortgages an attractive solution for many, and we look forward to supporting the Council, our advisers, and our customers going forward in delivering best outcomes.”
Sadna Zaman, Proposition Development Manager, Canada Life Home Finance said:
“It is positive to see that the equity release market is showing continued signs of growth.
With more people living longer and traditional retirement income sources under pressure, it’s clear that many homeowners are proactively exploring property wealth as a valuable tool to achieve financial stability and aspirations in later life. Furthermore, evolving financial planning considerations, such as forthcoming changes to inheritance tax, may also be prompting more homeowners to consider equity release as a strategic option.
Uncertainty around the economic outlook is prompting many homeowners to reassess their long-term financial strategies. Equity release is increasingly being recognised as an attractive option for those looking to manage both current needs and future financial planning.
Equity release offers valuable flexibility, and product innovations have only enhanced its appeal. It’s encouraging to see that growing numbers of customers are recognising these benefits – as reflected in the market data, which shows a significant year-on-year increase in new customers choosing equity release solutions.”
Dave Harris, CEO, more2life comments:
“What’s most encouraging to me about these figures is that greater numbers of later life customers are being made aware of the full range of options to them, beyond the traditional mortgage. We have only scratched the surface of how big this market can, and should, be.
Our own data has shown a growth in the number of advisers considering affordability when working with later life clients, which is resulting in borrowers benefiting from solutions that meet their personal needs and circumstances. Providers across the later life space have innovated, such as through the development of a suite of products that reward customers for making payments, and we are seeing that work bearing fruit.
There remains more work to be done however in ensuring that all advisers understand how the new breed of interest reward products can deliver a better outcome for their clients, particularly in a higher rate environment.”
Phil Quinn, Head of Sales, Standard Life Home Finance comments:
“The increase in the average lump sum released takes it to levels last seen before the disastrous mini-Budget, which is a good indication of confidence returning to the later life market. However, it also highlights the increased costs that people are facing in later life, given the significant growth in the cost of living in that time, which is necessitating larger releases.
The turbulence in markets has meant that some providers have pulled back, particularly when it comes to the maximum LTVs available. But this is changing; we recently launched two new higher LTV products on our Horizon, for example, opening up greater options for larger releases. That these products include interest reward functionality means borrowers are better positioned for managing the eventual costs of these solutions, leaving them in a far stronger position.”
