Equity release advances up 12% in Q3
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Equity release advances increased by 12% in Q3 to reach the highest level of lending seen since the beginning of 2010.
Safe Home Income Plans says its members - which account for 90% of the market - made new advances of £206.2m in Q3, up 12% on Q2’s £184.9m.
Furthermore, the number of equity release customers increased by 12% from 3,710 in Q2 to 4,148 in Q3.
Intermediaries’ share of the equity release market remained stable at 88% of new business.
The average amount released on an equity release product was £49,703 in Q3, little changed on Q2’s figure but up 6% compared to the same period last year.
Andrea Rozario, director-general of SHIP, says: “This has been an excellent quarter for the equity release market. We feel that breaking the psychologically-important £200m barrier for new advances in Q3 is fantastic news for an industry that is recognised to have a huge latent demand.”
She says that the equity release market has begun to turn a corner, and while lending levels will not return to pre-recession highs any time soon, more typical trading conditions are returning.
Rozario adds: “The UK population is ageing and with insufficient pension provision and the prospect of meeting significant care costs, we expect the demand for equity release products to increase significantly over the next few years.”
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