Equity release lending rises 12% in Q3

The equity release trade body revealed that its members saw the number of customers grow by more than 10% during the quarter, from 3,710 in Q2 to 4,148 in Q3.

SHIP said that intermediaries’ share of the equity release market remained stable at 88% of new business.

The average amount released on an equity release product was £49,703 in Q3, little changed on Q2’s figure, but up 6% compared to the same period last year.

Andrea Rozario, director general of SHIP, said: “This has been an excellent quarter for the equity release market.

"Considering the wealth locked up in a property as part of general financial or retirement planning is essential, as it will continue to be the greatest asset most people have as they approach retirement.

"We feel that breaking the psychologically important £200m barrier for new advances in Q3 is fantastic news for an industry that is recognized to have a huge latent demand."

She added that SHIP was confident the equity release market had begun to turn a corner towards more typical trading conditions.

Rozario said: "The UK population is ageing and, with insufficient pension provision and the prospect of meeting significant care costs, we expect the demand for equity release products to increase significantly over the next few years."