SHIP, the equity release provider trade body has announced its latest figures, which reveal a rise in new customers and a huge jump in total lending.
SHIP members made new advances of £206.2 million in Q3 2011, up 12 per cent on the previous quarter (£184.9 million), and the highest level of lending seen since Q1 2010 (£213.4m). The number of equity release customers also grew by over 10 per cent from 3,710 (Q2) to 4,148 (Q3). This growth is excellent news for the equity release industry, and shows that consumers are becoming increasingly aware of the benefits of accessing the money tied up in their home, to help them have a more comfortable retirement.
This increased awareness among consumers continues to be led by the adviser market, with intermediaries accounting for 88 per cent (£181 million) of new business, with 12 per cent (£25 million) of customers buying equity release direct from a provider. The share of equity release business coming through intermediaries has remained stable since the last quarter.
Andrea Rozario, director general of SHIP said: “This has been an excellent quarter for the equity release market. Considering the wealth locked up in a property as part of general financial or retirement planning is essential, as it will continue to be the greatest asset most people have as they approach retirement. We feel that breaking the psychologically important £200 million barrier for new advances in Q3 is fantastic news for an industry that is recognized to have a huge latent demand.”
“While it is unlikely that we will see an immediate return to business levels recorded prior to the recession, we are confident that the market has started to turn a corner and we will return to more typical trading conditions. The UK population is ageing and with insufficient pension provision and the prospect of meeting significant care costs, we expect the demand for equity release products to increase significantly over the next few years.”
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