Exciting News for the Equity Release Market
According to The Pensions Policy Institute (PPI), the number of homeowners taking advantage of an equity release plan could increase by a third if a future forecast predicting a rise in pensioners housing equity is correct.
These findings were revealed at a seminar which coincided with the release of 57-page report called, ‘Retirement Income and assets: how can housing support income?’ It suggested that housing wealth could rise by 40%.
Calls by SHIP - the UK’s trade body for equity release product providers - in recent weeks have centred on Government legislation acknowledging equity release as a viable financial tool for homeowners approaching retirement. This report could boost the market.
Acknowledging Equity Release as a Source of Retirement Income
With many homeowners likely to have equity available in their properties it could lead to the forecasted boom in equity release plans. Niki Cleal, director of the PPI, felt that many people were not considering their house as a source of income, even though they could potentially release a lump sum to improve their lifestyle in retirement.
Yet she did stress that equity release shouldn’t be seen as an alternative to other sources of income; commenting, “Income released from housing wealth can often complement other forms of income in retirement, though most people will not be able to access enough income from their housing wealth to take the place of other forms of saving.”
Equity Release Easier To Access
Hugh Pullinger of the Department For Work and Pensions also spoke about Government plans to make equity release more accessible as part of a package to improve healthy and active retirements.
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