The advice gap: Providing equity release advice in 2025
With only 9% of UK adults having paid for financial advice in the last two years, what does this mean for the future of the equity release industry?
The equity release industry faces a paradox: while the broader financial advice market struggles with uptake, equity release remains an advised product, meaning customers must receive regulated, professional advice before proceeding.
This mandatory advice requirement is a safeguard that ensures consumers are protected when making complex, long-term financial decisions, but it also means the advice gap directly impacts the industry. If fewer people are engaging with advisers, fewer may reach the point of considering equity release.
In this article, we at Royal London Equity Release* break down key points from the lang cat’s ‘The Advice Gap’ report 2025, now in its 10th year. We highlight why offering financial advice is crucial in the current economic climate and offer insight into how equity release providers/advisers have a role in helping to reduce the advice gap.
Why aren’t customers seeking advice?
The lang cat’s Advice Gap Report 2025, sponsored by Royal London, surveyed 2,045 customers to uncover the barriers to seeking financial advice. These insights are especially relevant to equity release, where advice is not optional, but still impacted by broader consumer behaviours.
1. Cost remains a barrier
The key reason that customers didn’t seek financial advice was that the cost wasn’t justifiable. 34% of respondents stated that financial advice is too expensive for them to consider, which is one of the reasons why only 9% of UK adults paid for financial advice in the last two years, down from 11% in 2023.
Interestingly, the report found that the age cohort for whom cost is least of an issue is the over-55s, with 25% of these respondents stating this as a barrier compared to 31% overall. Still, 1 in 4 is quite a significant number of people within the clientele for equity release who agree it’s a barrier, and therefore, advisers should remain aware.
2. Trust Is still an issue
27% of over-45s said they lack trust in advisers, citing another key barrier for customers seeking advice. This lack of trust explains why potential customers may be reluctant to meet with an adviser to explore their financial options. This is particularly relevant for equity release, which continues to overcome legacy reputational challenges.
3. Self-reliance and referrals
Some of the respondents opted to do their own research to find an adviser. Other respondents took advice because of a referral from a friend, family member or trusted colleague. A higher percentage of female respondents found advice because of a recommendation from a friend, family member or colleague compared to doing their own research.
As an adviser, you have the potential to harness the power of referrals and stay front of mind for future customers. You can leave guides, leaflets and referral cards with your existing customers to ensure they have something to share with anyone who asks them about their experience with you.
Advisers should ensure they take the time to focus on advocating for themselves and the services they offer.
What do advisers think?
The lang cat’s report also took insight from 201 advisers to better understand their views on why the advice gap exists and how it affects their ability to support their clients.
1. Consumer Duty Regulations
Tighter regulations are a necessity to ensure customers are protected, helping them make informed decisions with confidence. It is the adviser’s job to provide trusted, transparent, tailored, and thorough, advice and support. Half of the respondents from the lang cat’s survey stated that they have stopped serving clients as a result of consumer duty. The average age of those clients dropped was 54, especially important to highlight considering it is so close to the minimum age required to release equity.
2. Recruitment challenges
44% of advisers agreed that recruitment is an issue in the financial services sector. While 50% of respondents stated that “It can take time to find the right people, but they are out there”, only less than 10% said it was easy or no problem at all. A shortage of advisers could limit capacity, making it harder for customers to access the advice they need.
3. Technology: A double-edged sword
There are 2 ways that technology poses a barrier to advice, especially in the equity release sector.
First, in the over 55’s sector, consumers show a preference for face-to-face financial consultation. Technology developments could be a solution for the future, but it needs to be acknowledged that it isn’t the solution for everyone: less tech-based approaches still have value.
Secondly, advisers stated that they felt that technology itself needed to improve. The adviser panel believed that a further 38% capacity could be unlocked if the regulatory landscape was made easier, including improved adviser technology as a factor that could contribute to this.
Advisers also stated that better technology would allow them to:
- Improve their work-life balance
- Target more of the current core clients
- Target new client segments
- Invest in the people side of their business by recruiting more advisers
While current technology may not yet meet all adviser needs, investing in improved tools and platforms is a key step toward unlocking capacity and enhancing client service.
Using this research as an equity release adviser
Despite these challenges, the fact that every customer must engage with an adviser to release equity creates a unique opportunity to:
- Rebuild trust through consistent, regulated advice.
- Demonstrate value in every interaction.
- Potentially help close the advice gap, at least within this sector.
To secure the future of equity release, providers and advisers should:
- Invest in technology to improve adviser capacity and customer experience.
- Simplify advice models to reduce cost barriers.
- Educate consumers on the value and necessity of advice.
- Leverage referrals and face-to-face engagement, especially for older clients.
Access the full Advice Gap Report 2025
To learn more about the advice gap for yourself, download the entire report by clicking the link below.
Read the advice gap report now.
This is an article written for adviser use only and shouldn’t be relied upon by another person.
*Royal London Equity Release is a trading name of Responsible Lending Limited. Responsible Lending Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trademarks of The Royal London Mutual Insurance Society Limited. Responsible Lending is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 736158. Registered in England and Wales under company number 09801855. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX. Responsible Lending Limited is a wholly owned subsidiary of the Royal London Group. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Lending Limited’s regulatory responsibilities.
