One in 10 advisers expect equity release to become more popular for inheritance tax planning, while the research also showed that 70 per cent of IFAs who regularly write equity release business expect the market to keep on growing.
More than a quarter said lower returns from investments and pensions will fuel the market while 27 per cent said rising house prices will boost demand.
Some 38 per cent of IFAs surveyed believe public awareness and confidence in the market is vital to increasing the amount of equity release business they write. Nearly all of the respondents (92 per cent) backed government plans to regulate home reversion schemes.
Mark Kelly, director of Norwich Union Personal Finance, commented: “We expect the equity release market will continue to grow as people look at different ways to maintain their lifestyle in retirement. Public confidence in equity release is crucial.
“This is why we have lobbied consistently for the FSA to regulate lifetime mortgages and reversion plans.”
Ruth Whitehead, principal of Ruth Whitehead Associates, said: “Inheritance tax is a voluntary tax but still over £9 billion was paid out of property estates over the last year which is simply ridiculous.
“It shows people aren’t thinking about their inheritance planning, but equity release should hopefully start to play a bigger part in this. It would be a good way for people to make sure they are spending their money.”
