Equity release market primed for recovery

”Equity

New data from Safe Home Income Plans (SHIP) suggest that the equity release market could be turning a corner.

In the second quarter of 2010, the value of advances slipped to £196.7 million but the decline was smaller than in the previous three month period.

Drawdown equity release proved to be the most popular course, accounting for over 50% of sales, and the typical equity release client unlocked £45,702 from their home, up from £45,251 in the first three months of the year.

Since the latter part of 2008, the UK equity release market has been contracting, prompting several providers to quit the sector, but SHIP figures suggest that those remaining have picked up the slack and the trade body is hopeful that growth could resume this year.

Furthermore, director general, Andrea Rozario, says SHIP has been working successfully with the Government to raise the profile of equity release as a viable means of funding retirement.

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  1. Anonymous says:

    The reason for providers “quitting” was not due to the sector contracting, but instead the challenge of providing long term capital for this type of product, along with satisfying the required safeguards for the policyholder.

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