UK Property Remains Resilient: What That Means for Homeowners Over 55

What the 2026 market looks like

UK house price forecasts for 2026 remain cautiously positive. Savills expects approximately 2% annual growth this year, with stronger gains forecast as the market moves towards 2029. Yorkshire and Humber is leading regional performance with projected growth of 3.9%, while London continues to underperform at an estimated -3.3% for 2026.

This picture of modest but genuine resilience matters for homeowners considering equity release. The asset backing a lifetime mortgage is your property — and the value of that property at outset determines how much you could release. A stable or rising market is beneficial; the underlying collateral holds its value.

It is also worth noting what the data does not show: a collapse. Despite high interest rates, persistent inflation concerns, and subdued demand in parts of the market, UK residential prices have not fallen sharply. The structural undersupply of housing in the UK continues to provide a floor beneath values.

The wealth gap: property-rich, income-constrained

Many homeowners aged 55 to 75 find themselves in a position that feels contradictory. They own a property worth hundreds of thousands of pounds — sometimes over a million in parts of the south-east — but they live on a pension income that covers the basics and little more. Property wealth is inaccessible in normal circumstances. You cannot pay a gas bill with bricks.

Equity release exists precisely to bridge this gap. It is a regulated financial product that could allow homeowners aged 55 or over to release a portion of their property's value — as a lump sum, or as a flexible drawdown facility — without having to sell or move.

The amount that could be released depends on your age, your property value, and the lender's criteria. Older applicants typically could access a higher proportion of their property value than younger ones. A 70-year-old owning a £400,000 property might be able to release significantly more than a 55-year-old in the same property — though exact figures depend on individual circumstances.

The main later-life lending products explained

The equity release market in 2026 offers more flexibility than it did a decade ago. The three main product types to understand are:

• Lifetime mortgages: The most common form of equity release. You borrow against your property. Interest accrues and rolls up (compounds) over the life of the plan. No monthly repayments are required. The loan and accumulated interest are repaid when the property is eventually sold — typically on death or entry into long-term care. All Equity Release Council member products include a no-negative-equity guarantee.
• Drawdown lifetime mortgages: A variant of the lifetime mortgage that provides a cash reserve you draw from as needed, rather than a single lump sum. Because you only pay interest on the funds drawn, the total interest that rolls up over time can be significantly lower. Particularly useful for funding ongoing costs, home improvements in phases, or care needs that may arise in future.
• Retirement interest-only (RIO) mortgages: A regulated mortgage product where you pay interest monthly, keeping the loan balance flat. The loan is repaid on sale of the property. RIO mortgages require evidence of sufficient pension income to service the monthly interest. They are better suited to those who want to manage the total loan amount and have reliable income.

FCA-regulated advice is required before any equity release product can be recommended. Verity Home provides this advice on a whole-of-market basis — reviewing all available products, not just a limited panel.

Safeguards you should know about

The equity release market is more tightly regulated and more consumer-protective than it was in earlier decades. Key protections include:

• No-negative-equity guarantee: All Equity Release Council member products guarantee that you will never owe more than your home is worth at the time of sale. Even if property values fall sharply, the debt cannot exceed the sale proceeds.
• Right to remain: The Equity Release Council's standards include a right to remain in your home for life (or until you enter permanent residential care), regardless of how much interest accumulates.
• Independent legal advice: You are required to take independent legal advice before completing an equity release transaction. This ensures you understand the implications for your estate.
• FCA-regulated advice: All equity release recommendations must come from a qualified, FCA-authorised adviser. Verity Home meets this standard and advises across the full product range.

Is equity release right for you?

Equity release is not the right answer for everyone. It reduces the value of your estate — which may affect what you leave to your children or other beneficiaries. It is a long-term commitment. And the interest that rolls up over many years can be substantial, particularly if rates remain elevated.

But for homeowners who are property-rich and income-constrained, it could provide a meaningful improvement in quality of life, fund home improvements, supplement a pension, support family members financially, or provide a reserve for future care costs. The question is whether, given your circumstances, the benefits outweigh the costs.

That is exactly the kind of question FCA-regulated advice exists to answer. Verity Home will help you model the scenarios — including what happens to your estate under different assumptions — with no obligation to proceed.