New figures from Canada Life Home Finance reveal that the overwhelming majority of independent financial advisers 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 £4 billion mark in 2018, up from £3.06bn in 2017, making it the fifth record-breaking year in a row. And according to Canada Life’s research, 86% of advisers expect the value of the equity release market to increase further in 2019.
Two in five (40%) 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. And just under half (46%) expect the market this year to be worth between £4.5bn and £6bn.
Just 5% of advisers expect the size of the equity release market to decrease this year, while nearly one in ten (9%) 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. And 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.”