London’s property market has always played by its own rules, and new data suggests later-life borrowing is no exception. According to fresh analysis from Key Group, homeowners in the capital are unlocking more equity than anywhere else in the UK, and they are using it in increasingly disciplined ways.
The analysis, based on more than 1,000 customer cases agreed between Q2 2024 and Q1 2025 (data to 31 March 2025), reveals a decisive shift in how equity release is being used. Across the UK, the share of new plans taken primarily to repay an existing mortgage rose from 36% in Q2 2024 to 63% in Q1 2025. For many older homeowners, clearing the mortgage is now the main reason to tap property wealth.
London sits at the sharp end of this trend, combining some of the largest average releases with a growing focus on financial stability.
£145,471 per plan: the London effect
In 2025, Key Group customers in London released an average of £145,471 per plan. That figure is more than double the UK regional average and stands as the highest in the country by a wide margin. Compared to the year before, it represents a jump of more than £27,000 in the typical amount unlocked.
Those numbers reflect both London’s higher property values and the scale of the financial commitments its homeowners face. For older borrowers carrying mortgage balances into retirement, an equity release plan of that size can be the difference between prolonged monthly payments and a clean slate.
The underlying UK-wide data highlights how strongly mortgage repayment now dominates customer priorities. Over the period from Q2 2024 to Q1 2025, the share of plans primarily for mortgage repayment climbed from 36% to 63%. At the same time, more discretionary purposes fell sharply: home improvements dropped from 14% to 5%, property purchases from 7.9% to less than 2%, and vehicle purchases from 7.7% to 3.9%.
Londoners, with their substantial housing wealth, are well positioned to follow this stability-first model.
A pragmatic shift in how equity is used
Key Group describes this emerging pattern as a shift toward careful prioritisation. The data shows that while big optional projects are being scaled back, homeowners have not abandoned quality-of-life spending entirely.
Gifting, for example, fluctuated across the year, moving from 5.6% to 12.4% and then to 9.1%. Allocations for other debts increased from 2.7% to 9.1%, and holidays rose from 3.2% to 7.6%. The message is not that customers are cutting out treats or family support, but that these are increasingly balanced against the need to address core financial obligations.
For London businesses and advisers operating in the later-life space, this is a crucial insight. The capital’s older homeowners are not simply cashing in on property price growth; many are restructuring their finances in a deliberate way.
Multi-purpose planning from a single asset
The analysis also shows that two-thirds of customers split their release across more than one purpose. Only 31.6% of plans were used for a single goal, typically mortgage repayment or other debt. A slightly higher share, 32.7%, divided their funds across two purposes, 21.6% used three, and 9.5% allocated their release to four or more priorities.
This allocation behaviour reveals how equity release can serve as a multi-purpose planning tool. For a London homeowner with significant equity tied up in a property, one decision at the point of advice can simultaneously tackle a lingering mortgage, address smaller debts, and reserve funds for holidays or support to family.
In a city where financial pressures and aspirations coexist, this flexibility is increasingly valuable.
Who are these homeowners?
Beyond the capital’s distinctive property values, the broader customer profile in Key Group’s data sheds light on the changing face of equity release.
The average customer age is 69. Applications are predominantly joint (59%), with the remaining 41% being single applications. Among single applicants, women are in the majority, with 592 single female applicants compared with 423 single male applicants.
The average property value across the customer base is £319,809, with an initial loan-to-value (LTV) of approximately 19%. This indicates that customers are generally not stretching the limits of borrowing against their homes. Instead, they’re releasing a relatively small proportion of their property value to address specific needs.
Plan type data further illustrates how customers structure their borrowing. Drawdown plans, where funds can be released in stages, account for 1,540 cases, compared with 946 lump sum plans. Interestingly, despite drawdown being more common by count, the average drawdown facility size has fallen. This points toward larger initial withdrawals and smaller reserved facilities, reinforcing the narrative of immediate financial challenges being addressed upfront.
What it means for the London business ecosystem
For London’s professional services, financial advisers, legal firms and property businesses, these findings have clear implications.
First, equity release is no longer a fringe option. It is being used as a mainstream financial planning tool by older homeowners, particularly those in high-value markets like London, who are under pressure to manage mortgages and other debts in later life.
Second, the capital’s high average release value of £145,471 per plan creates significant spend and debt-reduction capacity. Whether the funds are used to clear an outstanding mortgage, consolidate other debts, assist family or support modest lifestyle spending, this money is being actively redeployed within the local economy.
Third, the growing emphasis on mortgage repayment and financial stability suggests a more cautious, planning-led mindset among older Londoners. The days of viewing housing wealth purely as a route to luxury renovations or second properties appear to be giving way to a more measured approach.
Key Group, headquartered in Preston and active nationwide, has supported customers in releasing more than £5 billion of property wealth. Through its brands, including Key, The Equity Release Experts, more2life and Air Group, it focuses on expanding access to equity release, raising advice standards, supporting the adviser community and innovating retirement lending solutions. Those aims align closely with the needs of a city where property wealth is abundant but financial pressures are real.
For London’s business audience, the message is clear: later-life property wealth is not just a passive asset. Used carefully, it is becoming a central tool in how the capital’s older homeowners navigate mortgages, debt and the balance between security and lifestyle.
More information, statistics and further data can be found at:
https://www.keyadvice.co.uk/retirewise/money/the-truth-about-equity-release-2025
