The research, carried out amongst IFAs at LV='s equity release roadshows in May 2011 revealed the main factors behind this predicted growth. The most popular reason (48% of IFAs) given was a shortfall in pension provision.
This was followed by (30% of IFAs) the desire to pay off existing debts such as credit cards and mortgages, and one in ten (9%) IFAs said they expected home improvements and the funding of domiciliary and long-term residential care to prove the greatest reason for more people releasing home equity.
More than two-thirds (68%) of IFAs also expect to see more providers re-enter the equity release market during the next year, with one in ten (10%) saying that a lack of providers in the market is one of the barriers to selling more equity release.
The majority (89%) of IFAs also believe that equity release should only be sold by specialists in the industry, with 71% saying any simplified sales process for equity release would be risky for customers.
Vanessa Owen, LV= head of equity release said:
"It's encouraging to see the majority of IFAs believe that equity release has a strong role to play in helping to solve problems such as the funding of long-term care and a lack of pensions provision in retirement.
"For many people, their home is their greatest asset so it is understandable that more and more people will want, or need, to access the equity in their home.
"Given the expected surge in demand for equity release it was encouraging to see the number of IFAs that attended our equity release roadshows this spring, wanting to find out more about how to make equity release a bigger part of the advice service they offer to clients.
"We also offer access to an LV= toolkit, providing advisers with their own branded marketing material and client communications to help raise awareness of equity release among their clients."
