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Equity release lending grew again in the second quarter

The Equity Release Council publishes quarterly figures compiled from whole-of-market returns. These are the second-quarter numbers, with the comparisons that give them meaning.

Source published · written up 8 September 2026

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

How this page is kept
Written by
Equity Release Facts editorial
Last checked
8 September 2026
Next review
8 September 2027

Lending rose, and the recovery came from new customers

Total lending increased to £597 million in the second quarter of 2026, up 4% on the previous quarter's £574 million. Overall customer numbers rose 4% as well, to 13,489.

The strongest movement was in first-time customers. 5,307 homeowners accessed housing wealth for the first time, a 9% increase on the first quarter, which the Council describe as returning to the same level recorded a year earlier. Overall lending and customer numbers, though, remained below where they were a year ago.

Where the number comes from

The Council compile the index from actual whole-of-market returns, which they describe as the UK's definitive equity release data. It is a trade body reporting its own market, and that is worth knowing when you read it.

How we check figures →
Lump sums fell, drawdown held

Average new lump sum borrowing fell 6% over the quarter to £113,779. Average initial drawdown borrowing rose 2% to £63,642.

What actually differs between them →
Reserve facilities stayed high

Average drawdown reserve facilities fell against the previous quarter but remained 7% higher than a year earlier, at £56,893.

Existing customers borrowed more

Further advance customer numbers rose 12% to 1,204. Returning drawdown customers eased 1%, to 6,978.

What it does not tell you

Nothing here is a rate, and nothing here is what you could borrow. Averages describe a market, not a household.

Why a calculator figure can change →

Reading a quarterly figure without being misled by it

The percentages are the part that travels furthest and means least on its own. A 9% rise in first-time customers is a rise from one quarter to the next, not a trend, and the Council are explicit that the same figure has only returned to where it was twelve months ago.

  • Every percentage here has a base. £597m is up 4% on £574m, and both numbers matter.
  • Quarter-on-quarter and year-on-year can point in opposite directions at the same time, and in this release they do.
  • Averages hide the spread. An average lump sum of £113,779 says nothing about what any individual was offered.
  • This is lending that completed. The Council note separately that advisers reported enquiries holding up while fewer cases completed.

What advisers told the Council about the months ahead

The release includes a broker forecast, and it is sentiment rather than data, so it is worth labelling as such. More than a third of firms, 37%, expected enquiries to increase in the following quarter, with 35% expecting applications to rise and 37% expecting completions to. Only around one in ten expected enquiries to fall.

That is what firms said they expected. It is not a forecast of the market and we do not publish one.

What we are not telling you

What any of this means for you. Market averages are not an offer, a rate or an indication of what you could borrow, and a quarter of data is not a reason to act or to wait. What you could release depends on your age, your property and a lender's criteria, and that needs an adviser.

Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Where this comes from
  1. 01 Equity Release Council · opened 8 September 2026 Equity Release market returns to growth with an increase in new customers, 3 August 2026 (Equity Release Council) Every figure on this page: total lending of £597m up 4% on £574m, customer numbers up 4% to 13,489, 5,307 first-time customers up 9% and back to the level of a year earlier, average new lump sum borrowing down 6% to £113,779, average initial drawdown up 2% to £63,642, reserve facilities 7% higher year on year at £56,893, further advance customers up 12% to 1,204, returning drawdown customers down 1% to 6,978, and the broker forecast percentages. Also the Council's own description of the index as compiled from whole-of-market returns.
  2. 02 Equity Release Council · opened 8 September 2026 Council publishes Q1 2026 Lending Figures, 5 May 2026 (Equity Release Council) The previous quarter, used here only as the comparison base: total lending of £574m, down 9% on the quarter and 14% year on year, and 12,958 customers. Opened the same day so the comparison is checked rather than assumed.

More updates

8 September 2026 The FCA is running a market study into lifetime mortgages Know that the regulator is looking at this market, what it is examining, and when it reports.
What has changed on this page
  1. First publication. The Council's Q2 release of 3 August 2026 and the Q1 release of 5 May 2026 were both opened and read the same day. The Council's own market-data archive still listed Q2 2025 at the top, so the figures were taken from the releases themselves rather than from the listing.
How this page is kept
Written by
Equity Release Facts editorial
Last checked
8 September 2026
Next review
8 September 2027

Read next

Questions people ask about this

Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.

Where do these figures come from?

From the Equity Release Council, the trade body for the UK equity release market. They compile the index from actual whole-of-market returns and describe it as the UK's definitive equity release data. It is a trade body reporting on its own market, which is worth bearing in mind when you read any of it.

Does a rise in lending mean rates have fallen?

No. These figures measure how much was borrowed and by how many people. They say nothing about the interest rate on any plan, and no rate is quoted in them. Lending volumes and pricing move for different reasons and one does not tell you about the other.

Does this tell me what I could borrow?

No. An average across a whole market describes the market rather than any household in it. What you could release depends on your age, your property and the criteria of whichever lender is being approached, and the only way to find out is to have somebody qualified look at your circumstances.

Why do the quarterly and annual changes point different ways?

Because they measure different things. Lending rose 4% against the previous quarter while remaining below the level of a year earlier, and both statements are true at once. A single quarter of movement is not a trend, and the Council themselves note that first-time customer numbers have only returned to where they were twelve months ago.

Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Talk it through with an adviser

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Advice is required to proceed with equity release and there may be other options which better suit your circumstances. Only if your case completes would an advice fee be payable, and the adviser will tell you what theirs is before you commit to anything. Other lender and solicitor fees may apply.

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