Lending across the equity release sector totalled £622m in the final quarter of 2024, new figures released by the Equity Release Council have shown.

This figure was a rise of 16% compared to the £525m reported in Q4 in 2023, and the third quarter running that total lending increased.

While the quarter enjoyed an end of year rise, the total annual lending figure for 2024 at £2.3bn, fell short compared to the total of £2.6bn in 2023.

However, the Council suggested that following Q4 being the most subdued quarter of 2023 for lending activity, 2024’s final quarter was an “encouraging sign of modest momentum building” in the market, amid returning consumer confidence.

This was demonstrated by the latest customer figures, which showed there were more than 15,000 customers active in the equity release market for the first time since Q3 2023, either agreeing new plans, taking drawdowns from existing plans or agreeing further advances to existing plans.

“It’s particularly notable to see a steady increase in returning customers using further advances, with a 27% rise this quarter, reflecting the confidence that homeowners have in leveraging their property wealth responsibly,” chair of the Equity Release Council, David Burrowes, commented.

“This is further supported by the gradual rise in UK house prices, which has given many customers the opportunity to access sufficient equity to meet their financial needs.

“The final figures of 2024 show that the equity release market has turned a corner and there is cause for optimism. Interest rates have started to settle and if the growth seen in 2024 continues to gain momentum, 2025 will see more customers considering the option to access their housing equity using an increasingly diverse range of innovative products.”

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