More over-55 homeowners in the UK are using equity release to fund their retirement, with borrowing activity climbing in the second quarter of the year despite ongoing economic uncertainty. Figures from the Equity Release Council show growth across new customers, further borrowing by existing customers and drawdown withdrawals, suggesting housing wealth is becoming a more established part of retirement planning alongside pensions and savings, a shift the Financial Conduct Authority has described as a "fourth pillar" of later-life finance.

Between April and June, the number of people borrowing via equity release rose 4 per cent to 13,489, while total lending increased 4 per cent to £597million, up from £574million in the previous quarter. New customer numbers grew fastest, up 9 per cent to 5,307, though the average new lump sum borrowed fell 6 per cent to £113,779; initial drawdown borrowing rose 2 per cent to £63,642. Further advance customer numbers rose 12 per cent to 1,204, while returning drawdown customers stayed broadly flat. Lifetime mortgages, which let over-55s borrow against their homes while retaining ownership, account for more than 99 per cent of the equity release market.