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A cautious approach to borrowing
Borrowers took a conservative approach to drawdown. New lump sum borrowing averaged £112,822, a 1% quarterly fall, and initial drawdown borrowing dropped 8% to £58,473. Reserve facilities bucked the trend, rising 3% to £58,497 — pointing to borrowers who want access to future funds without committing upfront.
“The latest figures show a market that is demonstrating resilience, with some areas of activity moving in the right direction despite the wider pressures on household finances,” said John Godfrey, chair of the Equity Release Council. “It is encouraging to see new customer numbers and returning drawdown activity increase over the quarter, although overall lending remains below the levels recorded a year ago.”
Godfrey stressed that housing wealth has a role to play in later life funding, but only where clients receive quality advice and robust consumer protections. “It is essential that people receive high-quality advice and have strong consumer protections in place to help them make informed decisions that are right for their circumstances,” he said.
Why are equity release brokers struggling to convert demand into completions?
The ERC’s quarterly adviser survey drew responses from 40 firms in October 2026. It reflects a market where demand is present but conversion is proving difficult:
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