This is according to the third Global Equity Release Survey report by the European Pensions and Property Asset Release Group (EPPARG) and EY.
The report analysed data from 13 countries across the world with established or developing equity release markets and used their data from 2025 to 2035 to explore their “growth potential”.
Looking at the UK market, the annual volume is predicted to grow from $2.9bn to $8bn by 2035.
The largest market will be the US, which is expected to grow from $5.5bn to $14.2bn over the period.
Australia will nearly double from $1.4bn to $3.2bn, while Canada will rise from $2bn to $7.6bn.
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The report said banks were the most common source for financing equity release mortgages globally, followed by insurance companies, securitisations and debt.
Lifetime mortgages are the most common type of equity release, available in most companies surveyed, followed by home reversion plans.
Lump sum products continue to be the most popular product globally, while annuity and drawdown products are available in a number of countries. Combination products, of lump sum and annuity, are starting to emerge in some European countries.
‘Growth barriers’ need to be addressed to ensure equity release market development
The report said growth barriers included a lack of knowledge and awareness, funding challenges and interest rates.
To combat these barriers, the report called for enhanced awareness and understanding, such as promoting equity release as a “viable retirement planning option” through advisers and “reduc[ing] the sentiment that equity release is a last resort”.
In markets where funding is an issue, it called for more institutional investors to enter the space and providers entering the market to boost the options available and reduce costs.
Fixed rates were also suggested as an option for markets where variable rate mortgages are currently only offered.
‘Global opportunities for equity release markets remain strong’
Steve Kyle, secretary general of EPPARG, said the survey highlights that the “global opportunities for equity release markets remain strong and that it continues to offer significant growth potential”.
He continued: “In terms of the drivers of demand, we believe that the challenges of ageing populations in many countries will lead to unsustainable social, economic and intergenerational burdens. We consider that part of the solution is the development of a safe equity release market.
“A key role in that development is to ensure there are consumer-focused industry standards, which not only protect consumers, but also contribute to an enabling environment to foster innovation and encourage the involvement of new entrants and socially aware funders and investors.”
Kyle said allowing elderly homeowners to draw on their housing wealth as an asset “unlocks significant economic and social benefits” as they can “enjoy a more independent and comfortable later life”.
The money is also often injected into the local economy, which helps create jobs, businesses and wider wealth, he noted.
“The challenges or barriers for equity release, in Europe and beyond, remain raising awareness, ensuring that property assets are part of the pension planning process and getting the funding models aligned to meet future demand, since a lack of funding remains a major barrier to growth in a number of European countries.
“As a global report, for completeness, we understand that drivers for demand and opportunities for growth of equity release are strong in the Western world, yet we also see the potential for significant growth in India and across Asia,” he noted.
David Burrowes, chair of the UK Equity Release Council (ERC) and EPPARG board member, said the survey resonated with its recent report with Fairer Finance on how housing wealth can bridge the later life funding gap.
“At the heart of the recommendations and survey is the need for greater customer awareness and increasing consumer confidence based on standards and innovation, which support good consumer outcomes,” he said.
Ben Grainger, partner at EY, continued: “The global equity release market has the potential to transform the retirements of thousands of people around the world. To unlock the potential, the market needs to deepen and more fully establish cross-border collaboration by sharing funding models and sources, and developing better practice customer standards.
“The progress that has been made to date is encouraging, and we look forward to working with clients around the world and supporting further growth and expansion.”
Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA) of the US, said: “Ensuring a safe and financially secure retirement for our aging populations is something governments across the globe are aspiring to through public and private sector innovation.
“The monetisation of home equity is one solution that continues to gain traction as indicated through this very important report. We look forward to continuing our collaboration with EPPARG to share and explore best practices for monetising home equity for this critically important endeavour.”
The ERC recently launched an international forum with representatives from Canada, Germany, Holland, France, Ireland, Italy and Poland.
