Prudential says the 19% increase in equity release business is a promising start to 2007.
Ali Crossley, director for lifetime mortgages at Prudential, says: It is great to see that the level of new business in the equity release market has continued to grow over the last year.
A 19% increase compared to the same time last year is a promising start to 2007.
With drawdown sales also up, it illustrates that customers are realizing the value of having control over their finances, by releasing money when they need it rather than taking a lump sum.
Datamonitor predicts the equity release market could reach a 3bn potential within the next five years, clearly highlighting the huge opportunity in the market.
But we have also seen an ever increasing demand for advice in the equity release market.
With providers offering more and more innovative products, it is essential that customers and in fact advisers are being educated about the choices available for retirement planning.
Our own research shows that around 83% of advisers stated that their clients are not as informed as they could be about equity release, highlighting the need for education and advice in this market.
It is now up to the industry to ensure that the equity release market continues to grow and to make sure that customers and advisers alike are aware of the benefits an equity release product could offer.
Prudential is continuing to support advisers with the help of sales aids and roadshows and towards the end of last year we introduced a sales force to give our customers face to face access to qualified advice.