Industry group the Equity Release Council’s quarterly market report for Q3 2024 shows that both new plans agreed, and total lending rose, for a second successive quarter for the first time in two years as the market’s gradual recovery continues.
Homeowners over the age of 55 withdrew £615m of property wealth from their homes between July and September, a 6% increase from Q2 2024.
With the number of new plans agreed rising by 2% to 5,370 over the same period, Q3 became the first time since before the mini-Budget of Autumn 2022 when the equity release market has seen two successive quarters of growth.
“Returning growth may have been modest to date, but it’s particularly encouraging to see the trend continue during the transition period sandwiched between the arrival of a new Government in early July and its first Budget statement later this month,” said David Burrowes, Chair of the Equity Release Council.
“Behind these improving numbers are reports from both advisers and providers alike that consumer confidence is steadily returning. That may not translate into an uninterrupted upwards trajectory from here, but we know there are many households who have decided that releasing equity is right for them and are now focused on ensuring the timing is also right.”
Average loan sizes increased modestly, with new lump sum lifetime mortgage customers taking £111,618 while those taking drawdown lifetime mortgages took £69,952 upfront and reserved another £49,747 for future use.
An 8% quarterly rise in existing customers taking further advances to extend their loans was a sign of customers having sufficient equity remaining in their homes, helped by UK house prices having risen year-on-year for six months in a row, since February 2024, according to the latest UK House Price Index.