Equity release positivity tempered by poor consumer education

29 July 2010 | By Samuel Dale

Its monthly adviser survey reveals six out of 10 believe activity will either increase or increase a lot throughout the rest of 2010 while most other advisers expect activity to stay the same. 

Over half of the advisers surveyed say wider consumer education on the benefits of equity release would be the biggest single benefit to the market in the next six months.

One third are hoping the funding markets will open in order to allow new providers to enter the market and increase the business appetite of those already active in the sector. 

A government-sponsored kite mark range of equity release products was only seen as beneficial by 6.1% of advisers and an increase in specialist equity release adviser numbers by just 3%.

Peter Welch, head of sales and distribution at Bridgewater Equity Release, says:

“The big challenge now of course is what the intermediary market can do to help deliver the increased activity it wants to see. It is interesting that most advisers want to see both greater consumer education about the benefits of equity release and an opening up of the funding markets.

He adds that advisers can do nothing about the funding markets but can help educate consumers.

And he adds: “Market activity and greater consumer knowledge about equity release are not going to magically increase on their own.  It is wrong to assume or believe that it is up to someone else to deliver in this area – we all have a responsibility and given specialist advisers are on the front-line dealing with consumers, it makes sense for them to embrace the role of educating the public alongside the delivery of advice.  Bridgewater will continue to offer support to advisers in this area as it is obvious that only through a collective approach across the entire sector will we fulfil these stated ambitions for an improved equity release marketplace.”