81% of equity release is through intermediaries
Share
Intermediary sales now account for 81% of the equity release market as the industry fell by 8% in Q2 2010.
Trade body Safe Home Income Plans says the total market fell to £196.7m compared to £213.4m in Q1 2010.
And the average sum advanced increased from £45,251 in Q1 2010 to £45,702 in Q2.
SHIP member, Intermediaries Distribution Channel, says direct sales of equity release fell by 29% from over 1,200 to 860 while intermediary sales fell by just under 2%.
Intermediary sales are 8% higher than the same time last year with drawdown remaining the most popular form of equity release with 56% of the market share and £110.7m worth of advances.
Andrea Rozario, director-general of SHIP, says: “Data from members for Q2 2010 clearly shows that the decline in the market, which started in Q4 2008, has reached its nadir. There are signs that a number of important initiatives spearheaded by SHIP - and its members - are working to grow the market.
She adds: “I am pleased to see that the tide of withdrawals from the market may finally be turning with the re-entry of a former provider - More2Life - in recent months. Finally, it is clear that current providers are absorbing the demand which was previously supplied by those exiting the market in the last 12 months. I look forward to seeing reports of strong growth from members over the coming months.”
