Equity Release  

Advisers expect 2019 to be record year for equity release

Advisers expect 2019 to be record year for equity release

A poll by Canada Life Home Finance has revealed the overwhelming majority of IFAs expect record lending in the equity release sector in 2019.

Figures to be released later this month by the Equity Release Council are expected to show the market reaching the £4bn mark in 2018, up from £3.06bn in 2017, making it the fifth record-breaking year in a row.

According to Canada Life’s poll of 100 advisers at the end of last year, 86 per cent of advisers expect the value of the equity release market to increase further in 2019.

Two in five (40 per cent) advisers expect a market that was worth £2bn just three years ago to grow by that amount alone in 2019 and top the £6bn mark by the end of this year.

Just under half (46 per cent) expect the market this year to be worth between £4.5bn and £6bn.

Just 5 per cent of advisers expect the size of the equity release market to decrease this year, while nearly one in 10 expect it to stay about the same as in 2018.

Alice Watson, head of marketing and communications at Canada Life Home Finance, said: "The equity release sector is thriving. Recent figures show that almost as much was lent in the first three quarters of 2018 as the whole of 2017.

"This research into the views of UK advisers offers a real vote of confidence for the sector. It’s clear they expect consumer demand to continue to grow apace, aided by advisers and providers increasing education, demystifying the products and making them more widely accessible.

"While uncertainty over the global political and economic situation may continue to hold back the housing market, equity release will still be a sensible solution for many – especially those using it as part of a more holistic approach to retirement planning."

emma.hughes@ft.com