Older homeowners unlocked £636m in property wealth in Q2, new data published by the Equity Release Council (ERC) has revealed.

The figure marks a 10% increase in total lending when compared to Q2 last year (£578m).

According to the ERC’s latest quarterly market report, there were 14,404 new and returning customers in Q2 2025, with lending driven by new lump sum mortgage customers taking on average £126,422 or 14% more than in Q2 2024 (£110,969).

However, the Council did note that the latest data showed a 4% quarter-on-quarter drop in lending, with borrowing in the equity release sector mirroring challenges seen in the residential mortgage market due to ongoing economic uncertainty, changes to stamp duty and the later Easter holidays.

Chair of the ERC, David Burrowes, said: “While the equity release market faces some of the same challenges seen in the residential mortgage market, new lump sum and drawdown loans are up as customers take advantage of stable long-term house price growth to support their later life finances.

“An approach which is only likely to grow in the future, with Fairer Finance predicting that by 2040, over half of UK households (51%) are expected to require housing wealth to support their spending needs in later life and retirement.”

While product availability remained robust with over 1,669 plans for advisers to choose from at the end of June, the ERC’s latest report highlighted that the average APR was 7.24% in Q2. This was higher than in Q2 2024 (6.64%) as gilt yields continued to rise, with investors looking for guaranteed returns amid global economic uncertainty.

“The later life lending market will inevitably grow as more customers look to their housing wealth to boost retirement income and meet care needs,” Burrowes added.

“We need to be ready and resilient to build upon strong advice standards, product innovation and a commitment to support a wider range of customers as this provides significant opportunities for the market.”

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