Discover the Q1 Equity Release Statistics Now

The Latest Equity Release Statistics! Is There Room for Improvement?
Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui
Do You Want to Know the Latest Equity Release Market Statistics for 2022? Find Out If Drawdown Lifetime Mortgages Are Still a Favourite Amongst Equity Release Customers & Why Q2 Saw a Strong Resurgence of Released Equity from New & Returning Customers. Get the Scoop Here!

Are you curious about the Q1 2022 equity release statistics?

The equity release industry seems to be booming, but do the statistics reflect this?

Without this essential information, you could get seriously caught.

What You’ll Learn in This Article:

    Fortunately, we’re here to guide you.

    Our editorial team at SovereignBoss aims to provide the latest equity release information on the market. 

    Therefore, we’ve analysed the latest statistics provided by the Equity Release Council to give you this important news.

    Here’s what’s happening in the equity release sector in 2022!

    A Record-Breaking Number of New & Existing Clients

    The equity release industry has never, in history, seen as many new and existing customers as it did between January and March 2022.

    This quarterly high came in at 23,395. 

    Our expert opinion: The sore in clients using equity release comes as a result of increased property prices and economic strain. Additionally, further product flexibility makes equity release an appealing option. 

    Between April and June 2021, 20,352 new and returning customers released equity from their homes.

    These figures are 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.

    Post-pandemic Impact

    If you average out the past 2 years since Q2 2020 and the 2 years before that, the past still wins.

    Since Q2 of 2020, there’s been 150,653 active equity release uses. The years before had  171,586.

    Our expert opinion: With current industry growth rates, the post-pandemic world will catch up soon. 

    The Number of New Plans Agreed Has Increased

    There’s an evident annual growth of new plans agreed across the regulated equity release market.

    The number of new plans agreed in the same time last year was at -9%, but this figure recovered to 21% in Q1 2022.

    An Increase in Total Quarterly Lending

    Customers borrowed a total of  £1.53bn between January and March 2022. 

    This is up from the  £1.34bn release in Q4 of 2021.

    Our expert opinion: The increase in property prices has meant there’s cash for homeowners to unlock.

    Inflation Figures Matched

    The new average loan size increased by 6% year on year. 

    This increase falls in line with the latest inflation figures, but it is a small figure next to the 11% annual property value growth across the UK. 

    The average property price rose by £27,0001.

    More Equity Released in the Busiest Quarter Ever

    Q1 2022 has been the busiest quarter in the recorded equity release history. Q4 2021 was the previously most-popular quarter.

    The quarter showed an increase of 34% compared to the same time in the previous year, during COVID conditions. 

    March Showed the Highest Results

    March was the most popular month for equity release, with 4,560 plans completed.

    March also brought on the exciting announcement that all new regulated plans now have the option of voluntary repayments.2

    Drawdown Lifetime Mortgages Once Again Take the Gold

    The drawdown lifetime mortgage remains the most popular type of equity release on the market. 

    54% of all new customers chose these plans, with 46% selecting a lump sum lifetime mortgage.

    Returning Customers Almost Reach the Pre-pandemic Peak

    With 9,805 returning drawdown customers being the peak, the 9,450 of Q1 2022 hasn’t yet met the mark.

    Further Advances Agreed to Between January & March 2022

    1,771 further advances were agreed to in the first 3 months on 2022.

    This is likely influenced by rising housing prices since only 1% of customers took further advances in 2021.

    How Is This Data Compiled?

    The Equity Release Council3 compiles this data based on member activity. This includes all regulated national providers.

    Common Questions

    How Many People in the UK Have Taken Equity Release?

    What Do These Equity Release Statistics Show?

    In Conclusion

    Equity release remains a popular product in the UK, as indicated in these statistics published by the Equity Release Council.

    Check-in soon because we update these equity release statistics each month. 

    Editor’s Note: The information contained in this website is for general information purposes only & while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. This content has been independently collected by the SovereignBoss team and is offered on a non-advised basis. View our editorial guidelines.

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