Rate reductions, product innovation and consumer confidence would spell continued equity release growth in 2013
There is an overwhelming belief that the increase in equity release activity experienced this year will continue into the next.
In a survey of independent financial advisers (IFAs), 56 per cent expected the market to grow over the course of the next 12 months with 28 per cent predicting a large increase in the sector. Only one per cent said activity would decrease.
With pensions flailing and savings fading equity release is becoming a viable option for many retired homeowners. However a reduction in rates, fees and charges levied by lenders as well as product innovation, a cut in interest rates and an overall rise in consumer confidence, is likely to make equity release even more appealing.
Many IFAs have, or are planning to, expanded their services to cater for this increased appetite in equity release; 62 per cent are currently offering guidance on the products while 38 per cent retain an interest in the area.
There are some advisers, however, who are reluctant to branch out into this market. While some reasons come down to costs, others recognise that equity release remains a niche product which, especially with its growing popularity, requires specialist financial and legal advice.
Content correct at time of publication