News Review: Equity Release
advisers can have a major impact on market
2009 also saw the launch press activity which provoked which would include a look
of an interesting new pilot by various reactions, it was at equity release.
by
the Joseph rowntree Foun- good to talk – to paraphrase the Pensions Policy insti-
Andrea Rozario
dation and one of our mem- Bob Hoskins and British tute also contributed to the
director bers, Just retirement. this telecom. equity release debate over
general
pilot scheme offers over 65s one of the highlights for the last four weeks when they
SHIP
in the boroughs of islington, many attendees – myself launched the final report in
2009 was a challenging year maidstone and Kensington & included – was the speech their series ‘retirement in-
for equity release and it looks chelsea the opportunity to given by Labour mP, the rt. come and assets’. the core
like 2010 may have some release smaller than normal Hon david Blunkett, who ex- conclusion of this report,
developments to look for- amounts of money from their pressed his unequivocal sup- that ‘many pensioners may
ward to! there have been a property to pay for additional port for the equity release not be able to achieve a de-
surprising number of major support at home. the fact industry. it was refreshing to sired standard of living from
events of note in the equity that these councils are will- hear a politician pledge his pension income alone,’ de-
release industry over the last ing to engage with the equity support for an industry that livered one of the strongest
four weeks. release industry to come up arguments for the further
Firstly, SHiP - which with an innovative solution most advisers are nonull development and expansion
represents over 90% of the to the ‘equity-rich cash-poor’ nullkenull to have heard of of the equity release industry
uK’s providers - released it’s scenario showed that equity nullnull and rent nullck and null in the uK.
Q4 2009 figures. these fig- release is starting to takes its nulls pnullased to see that to round off what was an
ures showed that sales were rightful place in the retire- the nulla pnullnullshed the fnullnull exciting four weeks in the
broadly similar to those at ment funding pantheon. regime for this regnullation news for equity release, SHiP
the same time in 2008 – a it will be interesting to see at the very end of Jannullrynull released its fifth annual
positive sign that the market what the results of this pilot anything nullich makes it member survey. this con-
is stabilising. in addition, will be and i look forward to easier for consnullers to tained mixed news for the in-
they revealed only a 1.9 % fall reading the conclusions that make informed choices dustry with 58 % of members
from Q3 2009 to Q4 2009 (a will be drawn up following and makes providers feeling that equity release
traditionally quieter quarter) the final assessment in July acconulltanulle is to null fulfilled a growing consumer
in the volume of plans sold. 2011. appnullnullednull need but 38 % feeling that
Q4 2009 also saw the amount 2010 got off with a fantastic the black cloud of poor repu-
of equity released by clients start with the inaugural SHiP many have tried to ignore, tation was still dogging the
increase by 4 % as consumer annual Lunch. the event smother or sidestep over the industry. the fact that fund-
confidence in a more buoy- was attended by many key years. ing equity release products is
ant housing market started stakeholders and this proved it was a surprisingly politi- yet to become a priority for
to return. to be an excellent forum for cal four weeks for the equity major institutions was also
the figures also revealed equity release providers, release industry as shortly seen as a stumbling block by
that advisers continue to advisers and third-party after the lunch, iain duncan 25 % of the respondents and
have a significant input into service providers to meet and Smith announced that the herein lies the one of the real
the market with almost three discuss the developments conservative party would be issues facing the market in
in four sales being undertak- in the industry. indeed, in launching an inquiry into the 2010.
en by an intermediary. a week that saw a flurry of issue of retirement funding Providers want to lend.
Politicians are getting inter-
Jon King, managing director, hodge Lifetime, saysnull
ested. intermediaries want
to offer their clients access to
The recently published figures from SHIP showed in the tens of millions rather than the hundreds of these products and consum-
that equity release is not immune from the decline millions currently sold each year. ers want to use the equity in
in new business experienced in the wider market. The market remains robust with growing their homes to improve their
Coming on the back of the news that Prudential is confidence amongst clients and Inullnull. The standard of living. How-
withdrawing from the market many will be feeling fundamentals that drinull this market remain ever, until more funding be-
less than positinull about prospects here. unaltered and not least the enullr changing comes available, realising the
nullet those with slightly longer memories will demographic picture. The market continues to full potential of the equity
recall years when new business was measured denulllop as it has done for decades. release industry will be
hampered.
10
mortgage introducer march 2010
MI p6-10.indd 6 23/02/2010 10:57
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48