Advisers must know about home reversion, says Sovereign

Sovereign Reversion has released its half-year results and highlighted that financial advisers need learn about home reversions.

Sovereign says once regulation is introduced, financial advisers will need to have a full understanding of the benefits of home reversions in order to fulfil their obligation to give impartial advice.

The results have shown that its rate of sales has started to increase and satisfactory valuations are being achieved in a difficult market despite a slow property market though most of the year.

Recently published figures from SHIP show a sharp increase in home reversion business, albeit from a low base.

Paul Spencer, chairman of Sovereign, says: We anticipate that cash generated from sales for the year will exceed the 2.3m received last year.

“Working closely with our associate, Home & Capital Trust, we will continue to build our position as a leading provider of home reversion plans and to deliver financial solutions for those over 65.

“I look forward to reporting further progress in the second half of the year.