UK Equity Release and Later Life Mortgages Market Report 2025
2025-11-10T12:03:30+00:00
REPC8758847_35D4_4B72_B446_20119DBAAB5C
2195
188466
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Report
en_GB
The UK equity release market grew considerably in terms of overall take-up over the past decade, despite a fall in sales in 2023 and 2024. Yet there is still potential…
UK
Retirement and Pensions
simple
UK Equity Release and Later Life Mortgages Market Report 2025
"Further improvements in product terms and flexibility will help providers capitalise on the significant interest shown in equity release by older homeowners."
Sarah Hitchcock, Associate Consultant – Financial Services
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EXECUTIVE SUMMARY
Opportunities for the later life mortgage market
Leaving an inheritance is not a priority for most over-55s
Position equity release as an option for those who want to live debt-free in retirement
Full product flexibility will improve the product’s appeal
Market dynamics and outlook
Market size & forecast
Market predictions
Pace of recovery expected to increase from 2028
Graph 1: forecast of total equity release lending, 2019-30
Five companies were responsible for over 80% of new lending in 2024
Graph 2: estimated market share of the top five providers of equity release, by value of new lending*, 2024
What consumers want and why
One in six adults aged 45+ will use property assets to support them in later life
Graph 3: expected or actual sources of income and financial support in retirement/later life, 2025
Only around a quarter of over-45s prioritise leaving an inheritance
The market for later life mortgages offers room for further expansion
Product flexibility is as important as the no negative equity guarantee
Interest building up quickly is the top concern
Significant interest in using equity release as an IHT planning tool
Graph 4: agreement with statements about later life mortgages, 2025
Innovation and marketing
Providers are focused on making products more flexible and broader in scope
MARKET DYNAMICS
Market size
Total equity release lending starts to recover
Graph 5: total value of equity release lending, 2019-25
New plan sales fell further in 2024
Graph 6: volume of new equity release sales, by type, 2019-24
Market forecast
Solid recovery expected
Graph 7: forecast of total equity release lending, 2019-30
Prospects for new business are set to improve
Market segmentation
Returning drawdown customers represent the largest share of recent activity
Graph 8: share of total equity release sales, by type, 2019-24
Many customers choose a phased approach to equity release
Graph 9: share of new equity release plans*, by product type, 2019-24
Loan sizes fluctuate with changing market conditions
Graph 10: average lifetime mortgage lump sum versus initial drawdown amount, Q3 2020-Q2 2025
Drawdown customers release a greater amount in reserve than a year ago
Graph 11: average lifetime mortgage lump sum versus drawdown (initial + reserve) amount, Q1 2024-Q2 2025
Market share
Just Group was the only provider out of the top five to report growth in 2024
Aviva and more2life are the largest providers of lifetime mortgages, by balances
Later life lending in context
Older borrowers account for a fifth of buy-to-let lending
Several equity release providers offer RIO mortgage as an alternative solution
RIO mortgages are a niche product
Graph 12: size of the equity release market versus the RIO mortgage market, 2024
Both types of later life mortgage are set for growth
Market drivers
Over-45s are projected to account for just over half of the UK population by 2055
Graph 13: projected size of UK population, by age group, 2025-75
Most over-65s own their home outright
Graph 14: housing tenure by age group, 2025
Strong house price inflation helps drive interest in equity release
Graph 15: average UK house price, August 2013-July 2025
Above-target inflation remains a market risk
Rising gilt rates push up interest rates on new lifetime mortgages
Regulatory developments
FCA wants to improve the quality of lifetime mortgage advice
ERC and AMI issue joint statement to address the challenges facing the industry
WHAT CONSUMERS WANT AND WHY
Sources of income and financial support in later life
One in four aged 45+ do not expect to rely on the State Pension
Graph 16: actual or expected sources of income/financial support used in retirement/later life, 2025
Nearly a fifth of over-45s plan to draw on property wealth in retirement
Under-55s are more sceptical of pensions supporting them in retirement
Graph 17: actual or expected sources of income/financial support used in retirement/later life, by age, 2025
Growing trend for people to tap into equity earlier
Financial priorities in later life
To maintain a good standard of living is the top priority
Graph 18: main financial priorities in retirement/later life, 2025
Homeowners are more likely to want to leave an inheritance
Graph 19: main financial priorities in retirement/later life, by housing situation, 2025
Living debt-free is a goal for many over-45s
Product flexibility and portability is essential
Ownership and future consideration of later life mortgages
Almost a fifth of over-55s are open to considering a later life mortgage
Graph 20: current usage and future consideration of later life mortgages, 2025
Those aged 45-54 show the greatest level of interest in equity release
Graph 21: current usage and future consideration of lifetime mortgages, by age, 2025
PTLM bridges the gap between RIO and ordinary lifetime mortgages
Graph 22: current usage and future consideration of PTLM, 2025
RIO mortgages have a younger age profile than lifetime mortgages
Graph 23: current usage and future consideration of retirement interest-only mortgages, by age, 2025
Perceived pros and cons of equity release
Retaining ownership of the property is a key selling point of equity release
Graph 24: products features/benefits that are appealing, 2025
Flexibility to make interest payments appeals to many
One in five are keen on inheritance protection
Nearly two fifths are concerned about the rapid build-up of interest
Graph 25: concerns about lifetime mortgages, 2025
Costs and charges also weigh heavily on people’s minds
Attitudes towards equity release and later life mortgages
Most older homeowners have never looked into equity release
Graph 26: agreement with statements about equity release and later life mortgages, 2025
Consumer confusion is a key barrier
IHT mitigation could be a key driver in future sales
Graph 27: agreement with statements about equity release and later life mortgages among prospective customers, 2025
Equity release is an emotional transaction as much as a financial one
INNOVATION AND MARKETING TRENDS
Competitive strategies and product development
Just Group set to get a new owner
Key Group integrates Standard Life Home Finance into more2life business
more2life launches a series of products with increased flexibility and broader appeal
Royal London improves product flexibility
Several providers reduce the length of ERC terms
Aviva’s Lifestyle Max offering
Advertising and marketing activity
Providers cut back on advertising
Graph 28: advertising expenditure on equity release versus other mortgage products, 2021-25
APPENDIX
Supplementary data
Adspend by media type
Adspend by largest advertisers
Market forecast data and methodology
Market size: underlying data
Market forecast: underlying data
Market forecast and prediction intervals
Forecast methodology
Report scope and definitions
Market definition
Product definitions
Abbreviations and terms
Equity Release Council data
Consumer research methodology
Nielsen Ad Intel coverage
Other sources
UK Equity Release Market – Trends and Insights
The UK equity release market grew considerably in terms of overall take-up over the past decade, despite a fall in sales in 2023 and 2024. Yet there is still potential for further expansion.
Around one in five homeowners aged 55+ are open to the possibility of getting a lifetime or retirement interest-only (RIO) mortgage in the future. With over-55s owning just over two thirds of the UK’s total housing wealth, this points to a large untapped market.
Providers have experienced a difficult few years, with lower sales volumes in 2023-24 compared to the record levels seen in 2021-22. However, the downward movement in interest rates has started to lift confidence. Loan-to-values also look more appealing to prospective customers than a year ago. Sales and customer enquiries have risen moderately in 2025, with higher lending levels across the year signalling the start of a recovery.
The longer-term prospects are also positive, with many among the younger age groups keen on using property wealth to boost their retirement income. Further innovation and regulatory support will help providers to capitalise on this opportunity, through greater flexibility and more competitive terms. This, along with rising consumer awareness and acceptance of equity release as a viable way of supporting people in later life, will drive future take-up.
This Report Looks at the Following Areas:
Current and projected size of the UK equity release market, alongside the current size of the broader later life mortgage market, by value of new lending.
Expected and actual sources of financial support, and main priorities, in retirement and later life, according to UK adults aged 45+.
Ownership of, and interest in, lifetime and retirement mortgages.
The main pros and cons of lifetime mortgages, according to UK over-45s.
Attitudes towards, and understanding of, later life mortgages.
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