Dean Mirfin, business development director for Key Retirement Solutions, said the lack of an instantly recognisable name selling equity release to consumers was holding the industry back and it was far from reaching its full potential.
Mirfin stated: “A lot of advisers pulled out of the market following regulation and mystery shopping, so access to advice is limited. The kick start for real growth would be a high street presence. If consumers see it on the high street as part of their day to day living, they will be more inclined to enquire about it. Anything that promotes the market in the right way is a good thing and whichever lender makes the first move will have a very good position in the market.”
John King, chairman of Safe Home Income Plans (SHIP), said the entrance of a big name was merely a matter of time as the baby boomer generation looked to equity release to fund their retirement: “The demand for equity release already exists. SHIP receives thousands of enquiries every year from consumers despite no advertising, which is an indication of the demand.”
Emma Austin, spokeswoman for Barclays, said that while they recognised there was a need for equity release, the bank currently had no plans to go into the market in the UK. She added: “Our people constantly review the market and if we found a real demand from our customers for that product, things could turn round very quickly.”
