Equity release lending returned to growth in the second quarter, rising 4% to £597m, according to the Equity Release Council.
The council’s latest market data shows overall customer numbers increased 4% quarter-on-quarter to 13,489.
It found that 5,307 homeowners accessed housing wealth for the first time, up 9% on the previous quarter and back to Q2 2025 levels.
Further advances by existing customers rose by 12% to 1,204, while returning drawdown customer numbers dipped 1% to 6,978.
Although lending and customer activity remained below Q2 2025 levels overall, the council says the latest figures suggest confidence is returning following a softer first quarter.
Average new lump sum borrowing fell 6% over the quarter to £113,779, while average initial drawdown borrowing increased 2% to £63,642.
Looking ahead, adviser sentiment was cautiously optimistic.
More than a third (37%) of firms expect enquiries and completions to increase during the third quarter, while 35% anticipate higher application volumes.
Nearly half (47%) expect application levels to remain broadly unchanged.
The adviser survey also found 74% of firms said customers were delaying decisions while waiting for rates to improve, while 55% cited borrowers being unable to achieve the loan-to-value they required.
Almost half (47%) expect interest rates to be lower than they were during 2025.
Equity Release Council chief executive officer Jim Boyd says: “It is encouraging to see this increase in activity despite the inherent challenge of continuing domestic and international uncertainty.
“The FCA recently described later life lending as a fourth pillar alongside pensions, savings and investments.
“Today’s figures suggest that transition is already underway.”
More2life chief executive Dave Harris says: “The latest figures demonstrate growing consumer confidence after a challenging start to the year, and it’s heartening to see that the numbers of people taking out lifetime mortgages for the first time has increased on a quarterly basis, bringing volumes back in line with what we saw last year.
“However, we can’t afford to lose sight of the need to ensure that later life lending is not only a part of conversations being held by specialist advisers, but also across all financial conversations being held with over-55 clients throughout the financial services space.
“It’s vital, if consumers are to have awareness of their full range of options and that they’re effectively signposted to all potential avenues so that they can make an informed choice.”
Air chief executive Will Hale says: “Following a period of market volatility and uncertainty that unsurprisingly impacted consumer confidence at the start of the year, the latest Equity Release Council figures offer an encouraging window into what we expect will be a positive second half of the year for the lifetime mortgage sector.
“The increase in new customers demonstrates a continued willingness to turn to housing wealth for the first time to achieve later life financial goals.
“Similarly, among those who already have a lifetime mortgage in place, the increase in further advance lending demonstrates that there’s a certain comfort in unlocking further equity if their circumstances demand.
“The optimism among the adviser community, with nearly four in ten expecting enquiries to increase in Q3, further underlines the potential for the rest of the year and broadly mirrors what we’ve been seeing within our membership”
But he adds: “If we’re to unlock the potential that bodies such as the FCA think this market can achieve we need to ensure that later life lending is not only being considered by specialist advisers, but across the entirety of the financial services sector when engaging with over-55 clients.”
Hale says this should include wealth advisers discussing retirement planning strategies, residential mortgage advisers exploring remortgage options, or customers wanting to help family members onto the property ladder.
