Steadying the SHIP in the Equity Release Market
The month of July will be defined by encouraging news for the equity release market, news that saw SHIP (Safe Home Income Plans) speak positively about the future of the market.
The month started in typical fashion with house prices grabbing the headlines. However, it was all about margins – after the Land Registry reported a slight drop, the Nationwide showed a 0.1% increase.
This was encouraging news for potential equity release customers when it emerged that the average pensioner couple needed £222 a week (excluding rent) to be able to live to an acceptable standard.
Age UK Report on the Equity Release Market
As the month progressed, research by Age UK suggested that up to a third of equity release customers were using some of the value of their homes to pay off debts. However, it wasn’t all about debt as home improvements grew in popularity.
The same report was greeted positively by SHIP, with Laurie Edmans, chairman of SHIP claiming that they “are delighted that they [Age UK] have chosen to review the equity release market in more details.”
The report also pleased SHIP because it suggested that three quarters of equity release customers felt the option was right for them. It went on to say that 97% of customers were satisfied with the plan they took out.
Encouraging Results in the Equity Release Market
Towards the end of the month SHIP released figures pertaining to the performance of the equity release market in the second quarter of 2010. The report suggested strong potential growth in the future.
The month closed with the news that the fixed retirement age will be abolished in 2011, giving employees greater freedom to continue working.
Don’t forget to follow all the latest equity release news with Age Partnership’s equity release videos.
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