Equity release lending rose to £597m in the second quarter of 2026 as new customer numbers returned to their level of a year earlier.

Total lending increased by 4% from £574m in the first quarter, according to the Equity Release Council. Overall customer numbers also rose by 4% to 13,489.

The number of new customers increased by 9% to 5,307, matching the figure recorded in the second quarter of 2025.

Further advance customer numbers climbed by 12% to 1,204, while the number of returning drawdown customers fell by 1% to 6,978.

Despite the quarterly improvement, total lending and overall customer numbers remained below their levels in the second quarter of last year.

Jim Boyd, chief executive officer of the Equity Release Council, said: “It is encouraging to see this increase in activity despite the inherent challenge of continuing domestic and international uncertainty.

“New customer numbers have recovered to the same level as a year ago, while overall lending and customer activity have both increased over the quarter.

“The FCA recently described later life lending as a fourth pillar alongside pensions, savings and investments. Today’s figures suggest that transition is already underway.

“As retirement funding becomes increasingly dependent on a mix of assets, housing wealth is becoming a more mainstream part of financial planning, supported by stronger consumer protections, greater product flexibility and high-quality advice.”

Average new lump-sum borrowing fell by 6% during the quarter to £113,779, while average initial drawdown borrowing rose by 2% to £63,642.

Average drawdown reserve facilities declined from the first quarter but remained 7% higher than a year earlier at £56,893.

Average initial drawdown further advances increased by 11% from the previous quarter to £29,367. Average lump-sum further advances were 6% higher than a year earlier.

BROKERS EXPECT FURTHER IMPROVEMENT

An Equity Release Council survey found that 37% of adviser firms expected enquiries to increase during the third quarter. Applications were expected to rise by 35% of firms, while 37% anticipated an increase in completions.

One in 10 firms expected enquiries to decline, while 47% anticipated little change in application levels.

Almost three quarters of advisers said customers were delaying decisions while waiting for borrowing costs to improve. More than half, at 55%, said some customers could not obtain the loan-to-value they required.

Some 47% of firms expected interest rates to be lower than they were during 2025.

Boyd said: “The adviser survey reinforces what we are seeing in the market. Demand remains resilient.

“Rather than disappearing, many decisions are being deferred.”