Grainger’s buyout of Sovereign limits equity release field

The news that Sovereign Reversions, parent of Home & Capital, has been acquired by Bridgewater Equity Release owner Grainger, is good for funding.

Home & Capital restricted its maximum release and property value earlier this year but Grainger has deep enough pockets to boost the funding of home reversion plans.

On the other hand, this move effectively narrows the sector to just two players as Aviva also relies on Grainger funding, leaving just Hodge Lifetime, with its less popular 90% LTV product.

We should encourage new companies to seek the backing of private equity firms as the UK residential property sector offers promising returns in the years ahead.

Simon Chalk