A “fair performance” from the equity release market in the first quarter of this year could be considered a catalyst for providers returning to the market and new ones entering it.
Whilst the performance of the equity release market was down by 4% on the last quarter of 2010 and down 15% year-on-year according to Safe Home Income Plans (SHIP), Director General of the trade body, Andrea Rozario felt there is encouragement to be taken from Q1. She said:
“Given conditions across the lending sector, this represents a fair performance by the equity release market.
“Equity release provides choice and flexibility to many consumers in the way that they finance their retirement, and as the pressures continue on the UK’s state and private pension system, we believe that the place of equity release within retirement finance will grow in significance.”
Many SHIP members predicted new providers would enter the market this year and this already looks likely to happen, to date, two new providers have come back into the marketplace offering equity release. Ms Rozario went on to say:
“We are optimistic about prospects for the coming year; the recent sixth annual SHIP members’ survey saw members predicting new entrants (60%) and market growth (67%) in 2011.”
Equity release schemes have the potential to unlock a tax-free lump sum from the value of a property to supplement income in retirement.
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