Rapid growth in the equity release market last year tailed off in the fourth quarter, reports the Equity Release Council (ERC).
While total lending in 2022 hit £6.2bn, which is up 29% on 2021, Q4 saw £1.36bn borrowed, a 20% dip on the last quarter – ‘bucking the usual trend whereby Q4 is the busiest quarter of the year,’ the ERC says.
In total, the equity release sector served 93,421 clients in 2022, which is a 23% annual rise and significantly more than the previous record of 85,497 clients who used equity release in some form in 2019.
The ERC states that in 2022, there were 49,285 new plans agreed, which is 20% up on the year, and that the number of new drawdown customers increased 16% annually.
The equity release market has doubled in size in five years, the report adds, growing from £3.06bn in 2017.
ERC chairman David Burrowes says: “Factors outside the industry’s control meant 2022 ended on an unusually quiet note in December, after the mini-Budget fuelled rate rises and tightening criteria.
“However, releasing equity is not a choice to make on a whim, and we are encouraged by signs that customers are pausing to assess their options.
“Seeking informed financial advice and independent legal advice from firms who sign up to council standards is essential at the best of times, and more so now than ever.”
