A coalition between the CML, Safe Home Income Plans (SHIP) and the Institute of Actuaries was mooted as a starting point from which to build a suitable agenda to take to the government.
The report concluded: 'If the government took a more rounded view of equity release it would recognise the many benefits that might flow from it,' explaining that the governmental emphasis placed on asset ownership meant it had a duty to 'help create and sustain ways in which people can exploit those assets.'
Governmental backing lent to the American equity release sector, largely in the form of guaranteeing lenders against loss, was found to have been a driving force within the market in a similar report.
Indeed Australian research found that a distinct evolution in consumer attitudes had prompted a greater uptake and renewed confidence amongst younger domestic households, with one key factor cited as a more relaxed attitude to inheritance.
Even though the US, Australian and New Zealand equity release markets have the same underlying fundamentals, the UK market has lagged behind.
Despite this sluggish growth, the report identified that the UK market still holds 'huge potential' for the next 20-30 years, however it stressed that this would be much swifter and more pronounced if the industry 'moves forward in more creative ways.'
Report author, Peter Williams, an independent consultant, also identified a need for further research into the market to determine why consumers opt for certain products or strategies, saying: "It feels as though we have been asking the wrong questions and are still stumbling towards the right answers!
"Taking in the round, the market appeal of the current offerings is quite limited. However, that is not to say more cannot be done and it is evident some providers are beginning to push out the boundaries of the equity release market.
"Although equity release can ease inheritance tax obligations, the overall picture, and especially for lower income households, is one where equity release is treated negatively in tax terms."
