Hodge Lifetime has published its latest figures which reveal that IFAs’ confidence in the market has remained high over the past 12 months and their outlook for the sector in the year ahead is optimistic.

75% of IFAs surveyed feel that consumer interest in equity release has either increased or stayed the same over the last 12 months, indicating that homeowners are still considering equity release as an option to help boost income during a difficult financial climate. These findings support SHIP’s Q2 business figures which highlight the resilient size of the equity release broker market in withstanding the pressures faced by today’s mortgage sector.

The effect of equity release upon state benefit entitlement remains the most important area of advice for advisers (33%), with charges and guaranteed drawdown facility ranking as the second and third most important areas (27% and 18% respectively). However, the emphasis placed on advice surrounding rates has declined over the past year. With distribution via the intermediary channel making up 64% of business share in Q2, according to SHIP [63%: 2007 and 2008], advice provided by intermediaries remains critical in the current market

The negative reputation of the equity release sector portrayed by the media was the top concern harboured by IFAs (28%), and 23% still expressed their worry about the potential for equity release to be confused with sale and rent back schemes. These findings mirror those of Hodge Lifetime’s first Confidence Index from summer 2008, where both the media influence and sale and rent back confusion ranked first and second place. However, while the media portrayal remains the primary concern, fewer IFAs feel that this is the largest current problem facing equity release this year and there is now growing emphasis on unnecessary concern over falling house prices and the fear of FSA mystery shopping

With SHIP figures showing an increase in the number of plans sold in Q2 and a continued interest in the equity release market, Hodge Lifetime’s report also finds that advisers are in a strong position to take advantage of this. Looking ahead to the future, 30% of IFAs said that they planned to network more with local solicitors and mortgage advisers, 23% said they would make more use of direct marketing and 23% said they hoped to obtain referrals from existing clients as a means of increasing their equity release business in the coming year

Jon King, managing director at Hodge Lifetime, said: “It is encouraging to see that one year on from the launch of Hodge’s IFA Confidence Report that IFAs are benefiting from an increase in consumer interest as well as heightened confidence in their own ability to advise on equity release