The fourth quarter of 2024 delivered some good news for the UK’s equity release market as more than 15,000 customers were active in one quarter for the first time in over a year, according to industry group the Equity Release Council. 

The ERC published its fourth quarter and calendar year-end data last week, which showed improvements across the board: Total lending, total plans, returning drawdowns and further advances each delivered gains in the fourth quarter, and all four categories, and new plans, all posted improvements on calendar 2023. 

“The Q4 2024 data demonstrates encouraging signs of recovery in the equity release market, with three consecutive quarters of growth in lending and total plans for the first time in two years. This is a testament to the resilience of the market and its ability to adapt to shifting economic conditions,” said David Burrowes, Chair of the Equity Release Council. 

“It’s particularly notable to see a steady increase in returning customers using further advances, with a 27% rise this quarter, reflecting the confidence that homeowners have in leveraging their property wealth responsibly. This is further supported by the gradual rise in UK house prices, which has given many customers the opportunity to access sufficient equity to meet their financial needs,” he added. 

Total lending also rose for a third successive quarter to £622m, up by 16% from £525m Q4 2023. It meant that total annual lending for 2024 reached £2.3bn, compared with £2.6bn the previous year. 

However, while Q4 was the most subdued quarter of 2023 for lending activity, the opposite was true in 2024 in an encouraging sign of modest momentum building with returning consumer confidence. 

Average loan sizes continued to increase for both drawdown and lump sum lifetime mortgages, helped by customers’ available equity being lifted by a 3.3% rise in average UK house prices over the last year according to the latest UK House Price Index.