The equity release market grew by 11% in 2025, as lending increased to £2.57bn, the Equity Release Council has revealed.

Figures from the trade body showed that in Q4, lending increased by 1.6% year-on-year to £632m, while the average release jumped by 5.7% to £123,174.

The council’s latest adviser survey found that 26% of customers are using equity release to clear mortgage balances, while 40% are putting it towards "positive uses", such as home improvements (21%), holidays (6%), other large purchases such as a car (4%) or gifting to the family (13%).

Chief executive at the Equity Release Council, 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. Releasing property wealth now supports around £1 in every £90 spent by retired households."

Looking to 2026, 80% of advisers polled forecast more lending in the current year compared to 2025, while only 2% predicted a fall.

A similar number suggested they would see overall customer numbers grow in 2026.

Chair at the Equity Release Council, David Burrowes, added that releasing equity is increasingly becoming part of homeowners’ retirement plans, with 38% of future retirees on track for a retirement income below the Pensions UK minimum standard.

He concluded: "Demographic and economic pressures mean the demand is there and likely to grow. Innovations in product design are making modern equity release more flexible and more secure, making it more attractive to consumers.

"The council also sees sustained long-term growth being supported by increased collaboration across the later life lending sector and regulatory engagement. In Q1 of 2026, the Financial Conduct Authority launches a focused later life lending market study, examining how mortgages and property-based solutions can better support consumers borrowing into retirement.

"This is an important step which reflects the reality that borrowing in later life is becoming more common and that the market must continue to evolve to deliver good consumer outcomes. That regulatory focus, combined with collaboration and continued product innovation, gives us confidence in the sector’s long-term direction. We have never had a better opportunity to bridge the retirement later life funding gap."

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