Gap in the market as interest in Equity Release continues to grow
A recent survey by IFA online has revealed only 54 per cent of advisers questioned are actively giving advice on equity release, suggesting there is definite gap in the market for brokers to benefit from this growing industry.
The same survey highlighted the current position of the equity release market. Over half of advisers agreed demand for plans had increased over the last 12 months, whilst a fifth of these advisers felt the market had increased to a large extent.
When quizzed about the reasons behind the increased activity, 24 per cent believed applicants were releasing equity to repay debt, 23 per cent to enhance their current lifestyle (i.e. paying for holidays) and 13 per cent for home improvements. 27 per cent, however, opted for the infamous “Other” option citing various reasons including being able to maintain a certain standard of living, paying for care fees, helping children with debt and inheritance tax planning.
More than two fifths of those surveyed are expecting the market to continue to grow as, with the current economic climate, more and more people view equity release as a solution to replenish savings, pay off personal debt, fund retirement and give children and grandchildren a leg up onto the property market. One adviser said:
“The older generation are starting to realise that there is no sense in holding on to the capital for another 20 to 30 years for their children, when their children need it now.”¹
Content correct at time of publication