UK Equity Release Market Shows Strong Growth in 2025, According to Latest Q4 Figures

New figures released by the Equity Release Council confirm that the UK equity release market experienced strong and sustained growth throughout 2025. The data, published as part of the Council’s Q4 2025 lending report, highlights increasing confidence among homeowners aged 55 and over, alongside a growing reliance on property wealth to support later life financial planning.

The figures provide a clear indication that equity release is continuing to move into the financial mainstream, supported by improved product flexibility, stronger consumer protections, and greater awareness of how housing wealth can be used responsibly.

Equity Release Lending Rises by 11 Percent in 2025
According to the Equity Release Council, total lending across the equity release market reached £2.57 billion in 2025. This represents an increase of 11 percent compared with 2024, when total lending stood at £2.3 billion. These figures are compiled from whole of market data submitted by Council members, making them the most accurate picture of equity release activity in the UK.

The growth reflects rising demand from homeowners who are seeking ways to supplement retirement income, repay existing mortgages, improve their homes, or provide financial support to family members.

Q4 2025 Data Shows Continued Momentum
The final quarter of 2025 maintained the positive trend seen throughout the year. Total lending during Q4 reached £632 million, which was 1.6 percent higher than the same quarter in 2024.

The average amount released per customer also increased, rising by 5.7 percent year on year to £123,174. This suggests that borrowers are not only continuing to use equity release, but are also releasing larger amounts as confidence in modern products grows.

The number of further advances taken by existing customers also rose, indicating that many people who already hold an equity release plan feel comfortable returning to the market to meet additional financial needs.

How Homeowners Are Using Equity Release in Later Life
The Equity Release Council’s report provides valuable insight into how funds are being used by customers.

A growing proportion of borrowers are using equity release to repay existing mortgage debt, with more than a quarter of advisers reporting this as a key motivation. This trend reflects the challenges faced by older homeowners who may still have outstanding mortgages as they approach or enter retirement.

At the same time, many customers are using equity release for positive lifestyle purposes. Common uses include funding home improvements, supporting family members through gifting, paying for holidays, and purchasing major items. This demonstrates that equity release is increasingly being used as a proactive financial planning tool rather than a last resort.

Industry Confidence Remains High Looking Ahead to 2026
Senior figures within the Equity Release Council have highlighted that the growth seen in 2025 underlines the important role housing wealth now plays in supporting financial wellbeing in later life.

With rising living costs, longer life expectancy, and pressure on traditional retirement income sources, equity release is expected to remain an important option for many homeowners. Adviser sentiment reflects this view, with the majority expecting lending volumes to continue increasing throughout 2026.

Why Choosing the Right Equity Release Broker Matters
As the equity release market continues to grow, choosing the right adviser and broker is more important than ever. Equity release is a long term financial commitment, and the quality of advice, product selection, and ongoing support can make a significant difference to outcomes in later life.

This is where working with an experienced, independent broker can add real value.

Why Consider My Later Life for Equity Release Advice
For homeowners considering equity release, My Later Life offers a clear and trusted alternative to going directly to a single lender. As one of the market leading equity release brokers, My Later Life carries out a full search of the market to identify the most suitable product for each individual client.

Rather than promoting one lender or one solution, My Later Life compares plans across all major equity release providers. This approach helps ensure that each client receives the right product, the right service, and the most competitive pricing available based on their personal circumstances.

The team at My Later Life focuses on clear explanations, careful consideration of long term implications, and tailored recommendations. Every client’s situation is different, whether the goal is to repay an existing mortgage, improve quality of life, or support family members financially. Independent advice ensures those goals are matched with the most appropriate solution.

By choosing a broker that searches the whole market, clients gain access to a wider range of features, interest rates, and repayment options, helping them make a fully informed decision about their future.

Equity Release as Part of a Broader Later Life Plan
The latest figures from the Equity Release Council show that equity release is now a well established part of later life financial planning in the UK. When arranged responsibly and with professional advice, it can provide flexibility, security, and peace of mind for many homeowners.

For those exploring their options, understanding the wider market and working with a specialist broker who prioritises individual needs can make all the difference.

Final Thoughts
The Q4 2025 lending figures confirm that equity release continues to grow in popularity and importance. As more homeowners turn to property wealth to support retirement, access to high quality advice and whole of market solutions will remain essential.

For anyone considering equity release, speaking with an experienced broker such as My Later Life can help ensure the right decisions are made, both now and for the years ahead.