Growing confidence in the equity release market is reinforcing the need for mainstream mortgage advisers to focus on establishing later life lending referral relationships to support good customer outcomes, according to Key Partnerships.

Data for the first half of the year shows total lending hit £1.17bn with the second quarter of the year showing an increase on lending in the previous quarter.

The strongest indicator of improving demand was that the number of new customers rose by 9% in the second quarter compared with the first quarter.

Nearly two out of five (37%) brokers expect inquiries to rise in the rest of the year with 35% predicting a rise in applications and 37% anticipating an increase in completions suggesting confidence that the market’s recovery will continue throughout the remainder of 2026 and into 2027.

Key Partnerships,  believes the rise in enquiries and applications underlines the need for mainstream mortgage brokers as well as IFAs and wealth managers to expand their offering to include access to later life lending solutions either through establishing an expert referral partnership or, if they have the scope to do so, by developing their own later life lending advice capability.

Key believes the need to offer the option of late life lending solutions is being driven by a combination of Consumer Duty obligations and the FCA’s Later Life Mortgage Market Study which emphasise the importance of ensuring customers are aware of and can access all relevant options. This helps ensure customers receive the most suitable outcome for their individual needs and circumstances.

Commenting on the latest dat, Key Partnerships director Damon O’Connell said: “Growing confidence in the equity release market as demonstrated by the increase in lending and customers in the second quarter of the year shows why specialist expertise is increasingly important while also highlighting a significant commercial opportunity for adviser firms.”