SHIP about the Future of Equity Release Market

Safe Home Income Plans (SHIP) has reported that equity release lenders are gaining more confidence about the future of the market. As much as 67 per cent express the view that the equity release market will see further growth this year.

60 per cent of those who are optimistic about the market say that more lenders will enter the equity release sector this year.

Apart from that, SHIP's survey has shown that 75 per cent of its members are inclined to think the equity release sector would be able to resist further economic pressure.

Simon Chalk, chairman of the Society of Equity Release Advisors (SERA), supports this opinion and informs about two annuity providers and one existing mortgage lender re-entering the market. He believes this will lead to increased competition among equity release providers, positively affecting the market.

In addition, SHIP has found out that 60 per cent of members think the government will take steps to help the industry resolve some public policy issues.

60 per cent say there see great perspectives for a government department to ‘own’ equity release, which can also contribute to the sector’s growth.

Nevertheless, more than 85 per cent think something should be done to increase and understanding of equity release amongst government officials and consumers. 

Andrea Rozario, of SHIP, commented that more and more people started to accept equity release as a viable retirement planning alternative. Such factors as increased longevity and inability of the government to provide people with sufficient retirement funding make it essential to consider other options available.

 


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