The latest figures from the Equity Release Council show a decline in both lending and customer numbers.
Total lending fell to £574 million in Q1 2026, down 9% on the previous quarter (£632 million) and 14% year-on-year (£655 million).
Customer numbers also declined, with 12,958 new and returning customers accessing housing wealth, down 7% on the quarter and 10% annually. Declines were experienced across all segments compared to Q4 2025. New customers fell 8% to 4,828, returning drawdown customers decreased 2% to 7,019, and further advance customers fell 27% to 1,071.
Mark Gregory, founder and CEO at Equity Release Group, said the figures reflect a shift in consumer behaviour. “Customers are still engaging with equity release – in fact we’ve experienced double digit growth in last quarter – but they are often taking smaller initial amounts and prioritising flexibility, suggesting that people are looking to retain control in an uncertain economic environment.”
Sadna Zaman, home finance proposition manager at Canada Life, said: “Against a backdrop of geopolitical and macroeconomic uncertainty, it’s natural that customers have taken a more cautious approach to financial decision-making this quarter.
“Property wealth remains a significant and often underutilised part of many individuals’ overall financial position. The later life lending market offers a broad range of flexible solutions designed to meet different needs and circumstances as people approach and move through retirement and we, as an industry, should continue to emphasise the important role property wealth can play as part of a well-rounded, long-term financial plan.”
Key Equity Release CEO Will Hale was unsurprised by the figures. He explained: ‘The numbers reported by the Council, based on completions of lifetime mortgages in Q1, are not a surprise given the uncertainty in the market in the run-up to the Budget in November last year and obviously more recently the geo-political environment that has seen rates increase and had a broader impact on customer confidence.
“However, at Key we have been encouraged by the level of customer demand that we have seen so far in 2026. Many of these enquiries been driven by customers feeling the pain of higher living costs and particularly by those existing older mortgage borrowers that face eye-watering increases in monthly repayments as they come off cheap five year fixed rate details.”
He added: “The latest lending figures published by the Council should serve as a timely reminder of the work that still needs to be done around evolving to holistic advice and consideration of all options if distributors are to meet their Consumer Duty obligations.”
In total, the Council data shows customer numbers declined from 13,902 in Q4 2025 to 12,958 in Q1 2026, a 7% quarterly reduction. On an annual basis, total customers fell 10%.
Adviser feedback suggests underlying demand is resilient, however. Nearly half (45%) of firms reported an increase in enquiries compared to the previous quarter, while only one third (33%) reported a decrease.
Applications also rose for many firms with 38% reporting an increase over the quarter, compared to 34% who reported a decrease.
David Burrowes, chair of the Equity Release Council, said the fall in activity was disappointing.
He added: “However, like other parts of the mortgage market, it’s clear the uncertainty dominating the UK and global economies, driven by the conflict in Iran, is contributing to higher interest rates and borrowing costs – while tighter loan-to-value availability is further slowing consumer decision-making, delaying completions.
“What we’re seeing is not a lack of demand – enquiries are up – but a delay in cases coming through. Advisers are reporting strong levels of interest, but customers are taking more time and, in some cases, pausing decisions altogether.
“It could well be that we are set for an uplift as conditions stabilise and delayed cases begin to complete. Over the longer term, the underlying drivers of demand remain in place, and housing wealth continues to play an important role in supporting financial resilience later in life.”
