Customers referred to specialist equity release brokers by other advisers have significantly higher house values than the market as a whole, research from Key Partnerships has found.
The equity release provider found that average house price across that the UKfor referral customers is approximately£332,500 – some 20% higher than the £275,000 for the equity release market as a whole, the analysis of its customer data shows.
In London the gap between market averages and referral customers rises to 24% with referral customers owning homes worth nearly £718,000 compared with around £579,000.
In the South East prices are 25% higher than the rest of the market at £413,000 compared with £329,000 while referral customers in the South West, East Anglia, North West, West Midlands, Yorkshire and Humberside, Scotland and Wales also have higher than average market property prices.
Key believes that the higher property values for referral customers are down to the wealthier client bases of advisers who do not focus on equity release but recognise the need for specialist support in order to secure the best outcome for their customers.
Will Hale, director at Key Partnerships, said: “Advisers who do not focus on the equity release market are increasingly recognising the need to offer a service to clients and that is being reflected in the higher property values.
“The equity release market is growing rapidly and the need for specialist advice is becoming more important. Referring customers to a specialist partner ensures they receive the best outcomes and removes all the regulatory and compliance worries while enabling advisers to maintain a valuable client relationship.”
