2025 Equity Release Statistics: Key Data Points
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- The current trends in equity release include increased flexibility, lower interest rates, and rising popularity of drawdown lifetime mortgages.
- The market has recently seen a significant growth due to a rise in the number of people seeking financial solutions for retirement.
- The most recent figures show that UK homeowners withdrew over £3.6 billion in 2020.
- The average amount released in the UK is approximately £77,000.
- As of 2020, over 80,000 homeowners in the UK are using equity release to supplement their retirement income.
Are you curious about the Q2 2022 equity release statistics?
You're not the only one.
We've heard it being said that the equity release industry has been booming in recent years, but do the statistics reflect this?
In This Article, You Will Discover:
Our editorial team at SovereignBoss aims to provide the latest and most accurate equity release information. We’ve analysed the 2022 Q2 statistics provided by the Equity Release Council to give you this important news.
Here’s what happened in the equity release sector in Q2 2022!
Customers Selecting Equity Release Amounts to Over 200 per Day
12 4851 new equity release plans were taken out by homeowners over the age of 55 between April and June 2022.
This amounts to an average of 205 new plans per day!
Our expert opinion: The soar in clients using equity release comes as a result of increased property prices and economic strain. Equity release is evidently a common option, possibly because of the flexibility it offers.
Equity Release Council Launched a 5th Product Standard
The Equity Release Council released another product standard at the end of Q1 20222.
This new standard means equity release plans now offer customers the option to make penalty-free partial repayments as and when they can afford to.
In this way, customers can reduce their interest and loan amount without the obligation to make regular ongoing repayments.
Our expert opinion: The flexibility to make partial repayments without penalties will appeal to new customers who have concerns about the total cost of borrowing.
The Number of New Plans Agreed Has Increased
The number of new plans agreed in Q2 increased by 26% compared to Q2 2021 when pandemic restrictions were still in place.
An Increase in Total Quarterly Lending
£1.6bn in property wealth was withdrawn by new and returning customers between April and June 2022, which is more than the £1.53bn
In the 2 quarters combined, there’s been a total of £3.13bn in equity unlocked.
The size of new plans remained stable at around £135,000, while returning customers withdrew £13,506.
Our expert opinion: The increase in property prices has meant there’s cash for homeowners to unlock.
Lump Sum Lifetime Mortgages Most Popular
More new customers have chosen lump sum lifetime mortgages over drawdown lifetime mortgages for the first time since Q1 2009.
This is an increase from 45% of new plans in Q2 2021 to 54% in Q2 2022.
Growth Remains Below Previous Trajectory in the Wake of Brexit Covid-19
The market may have returned to growth, but the slowdown of 2019/2020 caused by the uncertain post-Brexit economic outlook and the Covid-19 pandemic means growth is still well below its prior trajectory.
According to Mintel’s annual forecast from 2018, annual lending was expected to reach 8.96 billion by 2022.
May Showed the Highest Results
May had the highest results for equity release, with 4,436 plans completed.
This fell short of March 2022, which saw 4,560 plans completed and remains the most popular month of the year to date.
Returning Customers Almost Reach the Pre-pandemic Peak
The number of returning customers dropped slightly to 9,382 in Q2 2022, from 9,450 in Q1 2022.
This is, however, the first time since Q2 2020, when the Covid-19 pandemic took hold, that the industry has seen over 9,000 returning drawdown customers for 2 successive quarters.
Further Advances Agreed
Further advances, amounting to 2,120, were agreed to in the 2nd quarter of 2022.
This is likely influenced by rising housing prices since only 1% of customers took further advances in 2021.
The average property price rose by £20,000 year on year3.
How Is This Data Compiled?
The Equity Release Council4 compiles this data based on member activity. This includes all regulated national providers.
Common Questions
What Are the Current Trends in Equity Release?
How Has the Equity Release Market Changed Recently?
What Are the Most Recent Figures for Equity Release in the UK?
What's the Average Amount Released Through Equity Release?
How Many People Are Using Equity Release in the UK?
In Conclusion
Equity release remained a popular product in the UK, as indicated by the statistics above.
The regulation of the equity release market has provided much-needed surety for UK retirees. It's undoubtedly a viable way to unlock home capital in your senior years.
Check-in soon because we update these equity release statistics regularly.