Equity release has shifted from a niche product to a mainstream retirement-planning tool.

In 2023 alone, UK homeowners unlocked more than £5.6 billion of property wealth, according to the Equity Release Council.

But headline figures only tell part of the story.

Who’s borrowing, how much are they taking, and what are they spending it on?

Grab a cuppa as we explore the latest facts and figures—sprinkled with easy-to-follow explanations and handy resources from Timebank.org.uk.

Whether you’re a homeowner considering your options or an adviser brushing up on market trends, understanding these statistics will make you savvier about product choice, pricing and potential pitfalls.

From interest-rate movements to demographic shifts, let’s dive in.

Market Size: A Billion-Pound Industry

The equity-release market has expanded fivefold since 2013. After a record-breaking 2022 (£6.2 billion), 2023 cooled slightly to £5.6 billion as rising rates squeezed affordability—but that’s still the second-highest total on record.

More than 44,000 new plans were agreed, showing persistent demand despite economic headwinds.

Lifetime mortgages account for roughly 96 % of all new lending, with home-reversion plans making up the remainder.

If you’re curious about the structural differences, our explainer on Types of Equity Release outlines why lifetime mortgages dominate.

Average Loan Amounts: How Much Do People Unlock?

The average first-time drawdown in 2023 was £62,000, while lump-sum customers borrowed £103,000 on average.

These numbers track house-price trends: homeowners in the South East typically release £135,000, compared with £46,000 in the North East.

Borrowing levels are also influenced by age.

Homeowners aged 55-59 released an average of 20 % of their property value; those over 80 kept it nearer 35 %.

Want to run your own scenarios?

Try the Equity-Release Calculator to see how property value and age affect potential borrowing.

Product Preferences: Drawdown vs Lump Sum

Drawdown lifetime mortgages remain the most popular format, representing 54 % of new plans in 2023.

They allow borrowers to take an initial amount now and further instalments later—paying interest only on what’s actually withdrawn.

This flexibility has helped many clients manage rising equity-release costs.

Lump-sum plans still claim a healthy 41 % share, particularly among clients looking to clear an existing mortgage or make a single, large purchase like a holiday home.

For a deeper dive into flexible borrowing, see Drawdown Lifetime Mortgage.

Demographic Shifts: Who’s Releasing Equity?

The average age of a new borrower has crept up from 70 in 2019 to 71.5 in 2023, suggesting that older homeowners wait a little longer before tapping property wealth—often after exhausting savings or other investments.

Interestingly, 29 % of 2023 customers were single women, reflecting both greater female home-ownership and longer life expectancy.

If you’re weighing pros and cons, our balanced guide Is Equity Release a Good Idea? lays out key considerations for every demographic.

Interest-Rate Trends: The Cost of Borrowing

Average lifetime-mortgage rates climbed from 4.6 % in early 2022 to 7.2 % at the 2023 peak before easing to around 6.5 % in Q1 2024.

Although higher than previous lows, today’s rates still look modest beside the double-digit deals of the early 2000s.

Fixed-for-life pricing offers certainty, but small rate differences can compound over decades.

Compare current deals via Best Lifetime Mortgage Providers and keep tabs on live rate updates.

Regional Hotspots: Where Is Equity Release Most Popular?

London leads in total value released (£1.2 billion), courtesy of high house prices, yet the South East records the highest number of new plans.

Wales and the South West experienced the fastest year-on-year growth in 2023—each up about 6 % despite national cooling.

Northern Ireland and the North East lag behind, mainly due to lower property values and alternative financing preferences.

For homeowners in those areas, alternatives to equity release like downsizing or local-authority loans may fill the gap.

How Borrowers Spend the Cash

Mortgage repayment remains number one, with 48 % of lump-sum clients using part of their proceeds to clear existing home loans—mirroring the growing band of interest-only maturities.

Next up is home improvement (38 %), followed by gifting to family (19 %).

Other uses range from funding care to buying a motorhome. Explore common motivations—and some creative ones—in Equity-Release Uses.

Just remember that spending patterns should align with future-income needs.

Looking Ahead

Analysts expect annual lending to rebound to £7 billion by 2026, assuming interest rates stabilise and housing-market confidence returns.

Regulatory tweaks—such as the FCA’s focus on product suitability—should also boost consumer trust.

On the innovation front, expect more flexible features: voluntary repayments, fixed early-repayment charges and hybrid “later-life mortgages.”

Keep an eye on these developments to sidestep hidden pitfalls and secure deals that suit evolving needs.

Common Questions

Conclusion

The equity-release market is bigger, broader and more sophisticated than ever.

Understanding the numbers—average loan sizes, borrower ages, regional trends and rate movements—helps you gauge how the product might fit into your own financial plan.

If the stats have whetted your appetite, explore How Does Equity Release Work? or compare providers via Best Equity-Release Companies.

Data is powerful, but personalised advice is priceless.