“The versatility of equity release in addressing diverse financial goals”
| Equity release market has turned a corner, with £622m total lending in Q4 2024. | Homeowners use equity release for diverse goals, from home improvements to retirement income. | Equity release carries risks like high interest rates, reduced inheritance, and impact on benefits. |
According to the Equity Release Council’s (ERC) latest data1 for Q4 2024, over 15,000 customers were active in the market during the period – the highest number recorded since Q3 2023. Total lending in Q4 2024 topped £622m, a considerable uptick from the £525m recorded in Q4 2023.
As customers agree new plans, take drawdowns from existing plans or agree further advances (extensions) to existing plans, it seems confidence is returning to the market. Chair of the ERC David Burrowes, says that reflects “the confidence that homeowners have in leveraging their property wealth responsibly.”
Marking a third consecutive quarter of growth, Burrowes added, “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.”
The data highlights an increase in house prices contributed to larger loan sizes for both lump sum mortgage and drawdowns over the period. Product availability has also improved over the last year and the market has seen a rise in returning customers using further advances.
Referring to customers making use of reserve facilities to manage borrowing efficiently over time, Burrowes said this demonstrates “the versatility of equity release in addressing diverse financial goals, from home improvements to supplementing retirement income.”
It is important to note that equity release isn’t right for everyone. Risks include high interest rates, reduced inheritance, impact on benefits, early repayment charges, and potential negative equity. Exploring alternatives and seeking financial advice is essential.
1ERC, 2025
Equity release and lifetime mortgages will reduce the value of your estate and can affect your eligibility for means tested benefits.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.