Just Retirement blames economy for fall in equity release sales
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Just Retirement’s equity release mortgage advances totalled £65.1m in Q3 2011, down by 6.7% on the £69.8m advanced in the same period last year.
However, the firm’s annuity policies jumped by 52.7% over the same period, from £175.7m to £268.3m, resulting in an overall increase in group sales of 35.8%.
Rodney Cook, chief executive officer of Just Retirement, says the fall in equity release sales is down to volatile market conditions and economic uncertainty.
He says: “We are pleased to report that total sales for the group have grown by 35.8% in Q3, compared to the corresponding period last year.
“These results continue to demonstrate the resilience of Just Retirement’s business model despite challenging market conditions.”
He adds: “Equity Release sales have fallen slightly in Q3 and were 6.7% lower than for the same three month period last year due to the volatile market conditions and economic uncertainty impacting customers purchasing patterns.
“However, we remain convinced that this market has significant long term growth potential that will become more apparent as other distributors with strong consumer brands enter the market place and as further innovation materialises following the proposals outlined in the Dilnot report.”
Cook says that current market volatility is affecting consumer confidence and causing some consumers to delay purchase decisions, and he therefore expects a temporary slowdown in annuity growth going forward.
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