Total equity release lending in the first half of 2023 was £1.38bn, down markedly from the £3.43bn in 2022.

These figures come from Key’s Market Monitor, which indicates that consumer confidence has been heavily impacted by the cost-of-living crisis with many, according to Key, taking a ‘wait and see attitude’.

New equity release lending was £1.09bn in first half of 2023, down from £2.56bn for the same period in 2022.

Drawdown lending in the first half fell 56% year-on-year to £96m and further advance lending shrunk by 52% over the same period to £42m.

Responding to the latest report More2life managing director Ben Waugh comments: “While today’s figures make sobering reading, it is not something that will come as a surprise to anyone involved in the later life lending market.

“As with other residential property sectors, unsteady consumer confidence, sharp rate increases and an uncertain property market have encouraged customers to hold off making decisions”.

Waugh points out that with inflation falling to 7.9% in June and the property market proving to be more robust in 2023 than originally thought, there are green shoots which are being fanned by an increasing acceptance that housing equity can – and should – play a role in more people’s retirements.

“The latter point is especially pertinent at a time when older mortgage borrowers are facing not only a cost-of-living crisis but an affordability squeeze”.

He adds: “The H1 2023 figures released today underscore our belief that we will see a market below the record-breaking totals seen in 2022 but I am confident that we will see a stronger H2.  Pent up demand, product innovation and the gradual easing of the current challenging economic situation will all play a role in returning the later life lending sector to growth.”

Legal & General Home Finance  chief executive Craig Brown says Key’s Market Monitor shows that property wealth continues to be a steady and significant asset for people looking to boost their income.

“In the current climate, homeowners will be thinking about their options carefully, especially with rates expected to remain high. However, these findings suggest confidence is slowly returning. Whilst the later life lending sector has seen a dip in demand during the first half of the year, the next period is predicted to improve”.