The latest figures from the ERC show the number of customers in the equity release market up by 5% in H1 2015, compared to the same period last year, and overall lending up 11% in the same time frame.
Alice Watson, Product and Communications Manager at Retirement Advantage Equity Release, said:
“We’re seeing a market growing strongly and a customer base shifting. The average equity release customer is getting older, and their property values are increasing. Part of this growth is driven by demographic and economic trends, but much of it is also the result of more flexible products and more responsive providers, making equity release a more attractive option for a wider range of people.
“Our own experience in the first half of this year saw customers with average house prices higher than the ERC’s figures, but lower initial withdrawals and far more being left in drawdown reserves. This points to a change in the way people are using equity release. It’s now part of their long term planning, with customers looking at their retirement income holistically, drawing from different pots of savings and wealth to live the life they want to lead. The market has been responding to these changing attitudes with innovative, flexible products, and that’s reflected in the results we’ve seen.
“If we as an industry can keep up the pace of development, continuing to listen to advisers and customers and continue to deliver innovative, flexible products, there’s no reason why equity release cannot further cement itself as a source of retirement income.”
