Twitter Facebook RSS FEEDS

SHIP: Growth of equity release inevitable

Wednesday, 26 March 2008 12:00 AM

The growth of equity release in the UK property market is 'only a matter of time', according to Safe Home Income Plans (SHIP).

The organisation, which champions high standards of delivery from UK equity release providers, was commenting following the release of research from the Council of Mortgage Lenders (CML).

According to the CML the sector has underperformed to date, with lenders concerned over entering the market given the potential damage to commercial reputations and a consequent failure to develop innovative products.

However, SHIP believes significant growth in the use of equity release is only a matter of time, given the extent to which consumers have opted for property over pensions in saving for retirement in the recent past.

The organisation also hopes the quality and standards of equity release schemes will improve over the coming years, attracting business to the sector.

"The reality is declining levels of private pension provision and meagre state pension benefits will drive more people in this country to explore alternative ways to top up their income in later life," said Andrea Rozario, director general of SHIP.

"Some will work longer, but a very large number are already planning to use the value in their property."

"All that is necessary for this sector to increase enormously in size is for consumers - and their opinion formers - to recognise the huge improvements that have been made to most equity release schemes."

SHIP argues that, if larger lenders can be encouraged into the market, the system could be revolutionised.

However, with the current uncertainties in the primary mortgage market, such moves may be delayed, but the organisation argues the likely reality of the housing market going forward may in fact encourage more mainstream lenders to diversify into equity release, recognising the extent to which demand is set to boom.

"It may well be the case that in the USA and Australia equity release is a more popular product than it is in the UK right now, but like flexible mortgages in the past, it does not mean we will not catch up in the future," concluded Ms Rozario.

The full CML into the status of the UK's equity release market can be seen here.

Related stories

Hereford Cathedral

Downsizing to release equity not always practical

Gains from downsizing do not stack up for over-55s in one in three areas, says study by equity release group SHIP.

 SHIP: Equity release feasible as prices fall

SHIP: Equity release feasible as prices fall

SHIP: Equity release feasible as prices fall
The average amount of equity released by home owners was little changed at £49,703 but the figure was 6 per cent up on this time last year.

Equity release market grows by 10 per cent

Providers lend more than £200 million in third quarter as home owners look to release cash tied up in their property.

 Downsizing may be more sensible

Is equity release always the best option?

People in need of home repairs should explore options other than equity release to fund them, according to Sixty Plus.
Equity release is getting more popular, claims expert.

Cash-poor Brits 'boosting equity release uptake'

Cash-poor Brits are contributing to the growing popularity of equity release in the country, it has been claimed.

 Is equity release such a financial monster?

Equity release: The last resort?

Equity release: The last resort?

CML: Equity release has underperformed to date

CML: Equity release has underperformed to date

CML: Equity release has underperformed to date

 Equity release up 14% in second quarter

Equity release up 14% in second quarter

Equity release up 14% in second quarter
Property not made of gold bricks for retirement

Equity release 'must be last resort'

Equity release 'must be last resort'

 Consult experts before choosing equity release

Equity release 'is not always the right decision'

With falling property prices, Ark Financial Planning believes there may be better ways to free up cash than equity release.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.