Key Retirement Solutions welcomes the third reading of the Bill to introduce formal regulation of home reversion schemes. The reading that took place yesterday paves the way for royal assent to be granted by the end of the year.
Dean Mirfin, business development director of Key Retirement Solutions, says: “We welcome the passing of primary legislation on the regulation of home reversion schemes. This move will help to ensure that all consumers who choose to use equity release will receive an equal amount of protection and support from the FSA.
“Home reversion products currently account for only 5% of the total value of equity release plans sold in Q3 2005. With the widening perception that the housing market is slowing, their relative attractiveness is increasing and it is likely that more reversion plans will be sold in 2005 than in 2004. With this potential growth and in order to build consumer confidence in the industry, we fully support the governments attempts to implement these changes in a smooth and timely manner, which complements existing mortgage regulation.”