Unlocking Property Wealth: Why Equity Release is on the Rise in 2025

For many homeowners aged 55 and over, the family home is their biggest asset. Yet, as retirement approaches, questions often arise: How can I make the most of my property wealth without selling up? This is where equity release comes in.

The State of the Market in 2025

The UK equity release market continues to show resilience and growth. In Q2 2025, older homeowners unlocked £636 million in property wealth, a 10% increase year-on-year. Over 14,400 customers either took out new plans or accessed additional funds from existing ones. The average lump sum released was £126,422, up 14% from last year.[1]

One notable trend is the growing popularity of flexible drawdown plans. In fact, 55% of new customers opted for a plan that allows them to release funds gradually, helping to manage interest roll-up and maintain financial control.[1]

Why Are More People Choosing Equity Release?

Several factors are driving this growth:

• Home Improvements (39%)
  Many retirees are using equity release to upgrade their homes—whether it’s modernising kitchens, adding energy-efficient features, or making adaptations for later life.
• Clearing Existing Mortgages (31%)
  Paying off an outstanding mortgage can remove a major financial burden and provide peace of mind.
• Helping Family (25%)
  Gifting to children or grandchildren—often to help with property purchases or education—is becoming increasingly common.[2]

What’s Behind the Trend?

• Rising Property Values: UK homeowners over 50 hold an estimated £5 trillion in property wealth, making housing equity a powerful financial resource.[3]
• Pension Shortfalls: With the average pension pot for women at £69kand men at £205k, many retirees face a gap between their savings and the income needed for a comfortable retirement.[3]
• Product Innovation: Today’s equity release products offer more flexibility, including voluntary repayments and downsizing protection, making them safer and more adaptable than ever before.[3]

Is Equity Release Right for You?

Equity release isn’t a one-size-fits-all solution. It can provide financial freedom, but it’s important to consider:

• The impact on inheritance

• Potential effects on means-tested benefits
• How interest will accumulate over time

That’s why specialist advice is essential. At Twigden Asset Management, we’ll help you explore whether equity release fits your goals and compare the best options available.

Ready to explore your options?
Book a free, no-obligation consultation with our equity release specialist Dale today.

References

[1] Equity Release Market Remains Resilient

[2] Equity Release in 2025: How UK Retirees Are Using Their Property Wealth

[3] The equity release landscape and market outlook for 2025 | LV= Adviser