The equity release market is achieving "only a fraction of its potential", despite recently demonstrating strong growth, Air has stated.

Equity Release Council data has shown that total lending rose by 11% in 2025 to £2.57bn, while its research found that 80% of advisers expect lending to continue growing and the number of new customers to increase in 2026.

However, Air has stressed that total lending through lifetime mortgages accounted for just 8% of total later life lending, which stands at £25bn. This is despite recent innovations to make products relevant to homeowners aged 55 and over.

The later life lending platform stated that the number of equity release customers rose by less than 1% last year, demonstrating a "lack of awareness" among customers and advisers who are not later life lending specialists.

As a result, Air is urging advisers equip themselves with the knowledge of the full range of later life lending products and advise on those products or set up referral agreements with later life lending specialists.

It has highlighted potential growth areas, which include customers coming to the end of their five-year fixed rate mortgage deals and those looking to gift to family.

Chief executive officer at Key Advice and Air, Will Hale, said: "The sector is still performing at a fraction of its potential despite the very welcome growth in total lending last year and the prospect of more to come.

"Innovation in lifetime mortgages means they are very much relevant to a growing number of over-55s homeowners and their needs. However, it is clear the lack of awareness among customers and advisers beyond later life lending specialists means they are not being offered lifetime mortgages,

"Given customer needs, the £25bn value of the later life lending market should be higher and the share taken by lifetime mortgages should be higher too. The products are there but mortgage, pension and wealth advisers need to look beyond their silos and offer holistic advice – using referral relationships where appropriate to fill gaps in the scope of the advice and/or products that they offer."

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