SHIP revealed that the launch of flexible drawdown products had helped restore buoyancy and confidence in the market.
Figures from SHIP revealed that the sector was expected to see growth to £1.2 billion in 2006, with estimates that this could increase to £1.7 billion in 2007 as a result of Nationwide Building Society, Halifax and Barclays entering into the market, coupled with competitive product pricing in the sector.
However the trade body admitted that there was a continued shortage of advisers able to provide advice on equity release products.
Jon King, chief executive at SHIP, said: “The equity release market has come a long way over the past decade and has made very real strides in its attempt to rid itself from the scepticism that surrounded it in the early years. Equity release has never been cheaper, more accessible or – with full regulation imminent in 2007 – safer. Modern drawdown products are a far cry from the inflexible, poor value products of the past.”
He added: “The demand from the consumer for these products is clear – now it is up to the industry to ensure they have access to appropriate, expert advice as well as great value products.”
Stuart Wilson, managing director at the Equity Release Advisory Service, said: “Having knowledgeable advisers in this market is vital in developing consumer confidence and SHIP needs to clarify the criteria it requires in order to help build consumer confidence.”
