What Is the Equity Release Council?
The Equity Release Council (ERC) is the industry body for the equity release sector. Its member standards set out protections for consumers that go beyond the FCA's minimum requirements — most notably the no-negative-equity guarantee and the right to remain in your home for life.
The ERC is the equity release sector's trade body. Its member standards include the no-negative-equity guarantee, the right to live in your home for life, the right to move to a qualifying property, and mandatory independent legal advice.
ERC member standards — the consumer protections that matter
When a lender or adviser is an ERC member, they commit to meeting a set of standards that provide specific protections to borrowers. The key ones are:
- No-negative-equity guarantee — you or your estate can never owe more than the property sells for, even if the loan balance has grown to exceed the property's value
- Right to remain — you have the right to remain in your home for life (or until you enter permanent care), provided you comply with the terms of the plan
- Portability — you have the right to transfer your plan to a new qualifying property if you move
- Fixed interest rates — ERC member products must have a fixed rate or, if variable, a defined cap
- Independent legal advice — all borrowers must receive independent legal advice from their own solicitor before completion
ERC vs FCA — what is the difference?
The FCA is the statutory regulator for equity release in the UK. All firms giving equity release advice and all lenders must be FCA-authorised. The FCA sets minimum standards covering conduct, suitability, disclosure, and complaints. The ERC is not a regulator — it is a voluntary trade body. But ERC membership is widely regarded as the benchmark for quality and consumer protection in the sector, and virtually all mainstream equity release lenders and most advisers are members.
If a lender is not an ERC member, they are not bound by the ERC's standards — including the no-negative-equity guarantee. It is therefore important to check whether any product you are considering is from an ERC member lender. See What is a no-negative-equity guarantee?
The ERC and the broader equity release market
The ERC was founded in 1991 (then as SHIP — Safe Home Income Plans) in response to a period of concern about equity release products that left consumers in negative equity positions. The introduction of the no-negative-equity guarantee and related standards was instrumental in rebuilding public confidence in the sector over the following decades.
Today the ERC publishes quarterly market data showing equity release lending volumes, average loan sizes, and product trends. This data is the primary source of market statistics for the UK equity release industry.
Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026
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