The Q2 2021 equity release market statistics showed the popularity of the market increase.

With such uncertainty during the pandemic many homeowners over 55 were turning to equity release for help.

Read on to find out what the statistics revealed.

Key Q1 2022 Equity Release Market Statistics

The Q1 2021 equity release market statistics showed a strong resurgence in the sector.

Plan popularity was at an all-time high as homeowners clammered to unlock cash from their highest-valued asset to fund retirement.

We've got the full report right here!

The Number of New & Returning Customers Reached a Quarterly High

According to statistics between April and June 2021, 20,352 new and returning customers released equity from their homes.

These figures were closer to pre-pandemic times, contrasting what was seen during the height of COVID-19.

This had risen compared to the 16,527 in Q1 2021 and 13,617 in Q2 2020 when COVID-19 lockdown was at its peak.

Drawdown Lifetime Mortgages Still a Favourite Amongst Equity Release Customers

The most common type of equity release was still a drawdown lifetime mortgage, with 55% of customers opting for such plans.

Lump Sums Still the Most Preferred Payout Option

In June, lump sums¹ were the most popular product, and many were unlocked before the £50,000 Stamp Duty² holiday deadline.

Q2 2021 Saw a Lot of Returning Customers Due to Strong Market Confidence

Q2 2021 saw a lot of returning customers compared to 2020, when several plan holders paused withdrawals due to the pandemic.

667% Increase in Equity Released by Over 55s as Compared to Q2 2020 Figures

During the same time frame in 2020, only £698m was unlocked by over 55s. In contrast, £1.7bn of equity was released in Q2 of 2021, a steep 67% more.

These figures showed a steady rise as £1.14bn (2% less) was released in Q1 of 2021.

Q2 2021 Equity Release New Customer Trends

The Q2 2021 report revealed trends amongst new customers, such as lump sum plans overtaking drawdown plans and smaller first instalments being released.

Let's have a look at other trends.

9,898 New Plans Signed in Q2 2021

9,898 new equity release plans were signed in Q2 2021. This was slightly down from the 10,030 of the previous quarter.

The average during COVID-19 was 9,822, with the lowest being in Q2 of 2020 at 7,341, during the height of lockdown.

3,348 Plans Agreed to in June 2021 Alone

The newest plans in Q2 were agreed to in June, with this figure being 3,348.

June 2021 Saw Lump Sum Plans Overtake Drawdown Plans as the Most Preferred Equity Release

June was the first month in more than a year where more customers opted for lump sums instead of drawdowns.

1,726 lump sum plans were unlocked, and 1621 drawdowns.

This was likely linked to June’s £500,000 Stamp Duty holiday deadline, where older folks would have been helping their families with moves before this time.

First Instalments decreased by 4% As Compared to Q1 2021

On average, first instalments were at £86,349, 4% lower than the previous quarter. The figure in Q1 was £89,758.

New Lump Sum Mortgages Reached New Heights at £129,558

New lump sum lifetime mortgages reached £129,558, 5% more than Q1.

This figure was likely influenced by property value increases and the Stamp Duty holiday deadline.

Q2 2021 Equity Release Existing Customer Trends

Q2 2021 trends for existing customers included a decrease in returning drawdown customers and an increase in plan advances.

9,382 Existing Customers Withdrew Funds From Their Drawdown Plans in Q2 2021

9,382 existing customers withdrew from their drawdown plan’s agreed reserves in Q2 of 2021.

This was a significant increase compared to the 5,566 in Q1 2021 and 5,608 in Q2 2020.

35% Decrease in Returning Drawdown Customers Due to COVID-19

The first 12 months of the pandemic saw just 24,663 returning drawdown customers.

Q2 2021 report figures were indicative of how the market had started to recover. Pre-COVID times saw 37,660 customers in 12 months.

Q2 2021 Sees Increase in Plan Advances

Between April and June 2021, further advances on plans were signed by 1,072 homeowners.

This was a typical trend for COVID-19, as people were looking for more money to survive the pandemic.

A Note From The Equity Release Council on The 2021 Equity Release Market Statistics

David Burrowes, the Chairman of the Equity Release Council commented:

“Judging by these latest figures, the equity release market is showing signs of stability and durability as the option to access property wealth opens doors for thousands of people to pursue their financial goals.

“We were accustomed to more than 20,000 new or returning customers releasing equity each quarter in the two years before COVID-19 struck.

We’re now seeing activity levels returning to that status quo³, with some existing customers returning to make withdrawals that were put on hold last year.

The gradual recovery suggests people carefully weigh up their circumstances and long-term needs,

Helped by specialist financial and legal advice, with speculation about a spike of activity during the pandemic so far proving unfounded.”

“The steady recovery has been helped by confidence in the wider property market, where house price gains over the last year have given many homeowners more equity at their disposal.

Equity release has become a socially important means for one generation to help another, as well as meeting later life financial needs.

June’s Stamp Duty deadline will have prompted some older homeowners to pass on a ‘living inheritance’ so that younger family members can climb the property ladder.”

Looking for more information on equity release market statistics and related equity release information?

We have more equity release infographics.

Common Questions

In Conclusion

The pandemic played a big part in shifting the trends in the equity release market.

With things mostly back to 'normal', why not have a look at the latest statistics report to see what's happening in the world of equity release?