ERC Q1 Report reflects a more cautious and considered customer

05 May 2026

Mark Gregory, Founder & CEO at Equity Release Group

The latest figures from the Equity Release Council highlights pressures in the market, with a decline in both lending and customer numbers, however demand is not disappearing, but rather reflects a more cautious and considered customer.

What we’re seeing is 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.

The market for later life planning is diverse, with consumers now having to prioritise immediate expenses as opposed to longer-term goals, therefore usage is shifting.

At the same time, the reduction in new customers highlights an ongoing challenge around awareness and accessibility. For many, the need is there, but the journey to advice is limited or can feel complex to navigate.

We’re seeing a market that is becoming less about volume growth and more about the quality of engagement. Firms that are investing in technology, improving access to advice and building more diverse distribution models are continuing to see positive momentum, even in a flatter market.

We are also seeing how customers are using equity release as part of a broader financial strategy, from managing financial pressures to supporting family members, equity release is now shaping the customers wider financial planning goals.

Looking ahead, the fundamentals of the market remain strong. As consumer confidence stabilises and innovation continues across advice and product development, there is a clear opportunity for more sustainable growth, driven not just by demand, but by how well the industry responds to it.