The Wealth of Equity Release Begins To Be Appreciated
This week the Conservative Party announced that they will be launching an inquiry into funding for retirement; incorporating equity release. This move has been backed by Safe Home Income Plans (SHIP).
It also comes hot on the heels of David Blunkett’s glowing endorsement of the equity release market.
“Equity release obviously has a future”
Speaking at the first annual equity release lunch hosted by SHIP, David Blunkett said: “With a substantial amount of the £700billion UK housing equity potentially available for equity release, it obviously has a future in helping to deal with the most enormous challenges facing us as we age.”
With dwindling pensions and more homeowners struggling in retirement, equity release has the potential to supplement income. Through lump sum payments or regular installments – all tax free – an equity release scheme could help improve a homeowner’s lifestyle.
It also appears that Independent Financial Advisors (IFAs) are playing a greater role in introducing customers to equity release - accounting for 40% of introductions in the final quarter of last year.
This is helping to promote a greater understanding of the equity release market and its benefits whilst ensuring that customers get the right advice.
“Astounding wealth held in housing equity”
The proposed Conservative inquiry is another timely boost to the equity release market. Andrea Rozario, director general of SHIP, said: “An astounding 40% of the UK’s household wealth is currently held in housing equity but only 1% of UK pensioner households tap into equity release products.
“It is vital that this topic is addressed, especially at a time when the welcome improvements in longevity are, unfortunately, coinciding with a downturn in saving for retirement.”
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