Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Equity Release Lending Grows to £597m as Customer Numbers Rebound

Equity release lending in the UK increased by 4% quarter-on-quarter to £597 million in Q2 2026, according to figures from the Equity Release Council (ERC). Customer numbers also rose by 4% to 13,489, signalling a return to growth after a slow start to the year.

The ERC reported that of the total customers in Q2, 5,307 homeowners accessed their housing wealth for the first time. Among existing borrowers, there was a 12% increase in those opting for a further advance, reaching 1,204, while the number of people returning for a drawdown was stable, with a 1% fall to 6,978.

Loan Sizes and Borrower Behaviour

The average size of a new lump sum loan dropped by 6% over the quarter to £113,779. In contrast, the typical initial drawdown borrowing amount increased by 2% to £63,642. The ERC noted that this pattern suggests borrowers are taking a cautious approach to accessing housing wealth.

Average drawdown reserve facilities declined on a quarterly basis but remained 7% higher than the previous year at £56,893. The average initial drawdown further advance loan size rose by 11% compared to Q1, reaching £29,367, while the average lump sum further advances were 6% higher than a year earlier.

Adviser Sentiment

The ERC gathered adviser sentiment, finding cautious optimism in the market. According to the report, 37% of firms expected enquiries to increase in Q3, 35% anticipated a rise in applications, and 37% predicted more completions. Only 10% of firms expected enquiries to fall, while 47% forecast application levels to remain stable.

Relevance for Letting Agents and Inventory Clerks

The increase in equity release activity and the cautious approach to borrowing may influence the availability of rental properties and the movement of older homeowners within the property market. Letting agents and inventory clerks should be aware of these trends as they may impact property instructions and tenant turnover in the coming months.