Record year for equity release predicted by IFAs

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A large majority of IFAs expect record lending in the equity release sector in 2019m, according to latest figures from Canada Life Home Finance.

The firm said figures to be released later this month by the Equity Release Council are expected to show the market reaching the £4 billion mark in 2018, up from £3.06 bn in 2017, making it the fifth record-breaking year in a row.

According to Canada Life’s research, 86% of advisers expect the value of the equity release market to increase further in 2019.

40% of advisers expect a market that was worth £2bn just three years ago to grow by that amount alone in 2019 and top the £6bn mark by the end of this year. And 46% expect the market this year to be worth between £4.5bn and £6bn.

Just 5% of advisers expect the size of the equity release market to decrease this year, while 9% expect it to stay about the same as in 2018.

Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “The equity release sector is thriving. Recent figures show that almost as much was lent in the first three quarters of 2018 as the whole of 2017.

“And this research into the views of UK advisers offers a real vote of confidence for the sector. It’s clear they expect consumer demand to continue to grow apace, aided by advisers and providers increasing education, demystifying the products and making them more widely accessible.

“While uncertainty over the global political and economic situation may continue to hold back the housing market, equity release will still be a sensible solution for many – especially those using it as part of a more holistic approach to retirement planning.”

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