For the housing market, a dip in prices has finally arrived. After many years of growth, sometimes rampant and borderline unseemly growth, the market has hit a rough patch. It’s hardly surprising after all the drama of the last few years that property prices have taken a hit, but that’s not much comfort to those looking to sell.
However, recent data might perk people up. According to the Halifax, property prices crept up by 0.8 per cent in March, which followed a 2.1 per cent rise in February. Yes, this is hardly a sign of a rampant bull market that is about to leap skyward once more, but it might be a signal that the rot may soon stop.
Ultimately, of all the assets and investments people can get behind in the UK, property appears to remain one of the safest and most resilient. For the equity release industry, my corner of the mortgage market, resilience is something we should remember is a part of our own history.
When the going gets tough…
Of course, things are difficult for those in our market right now and with a number of products and options not currently available, customers may not have the choice they once had. But we are resilient too. This industry has been through many ups and downs over the years, and we are still here. Gone are the days of negative equity and scandals. Today’s equity release industry still delivers customers safe, flexible and smart products they can rely on.
Now, that may not seem to mean much in this current environment, but we will see out these choppy waters and we should all be comforted by the fact that our industry has seen out far tougher spots over the years. With the property market possibly rebounding, we will hopefully see confidence from both customers and lenders alike doing the same and equity release get back on the same successful path it was on until very recently.
…the tough get going
In fact, last year, which of course included the calamitous mini Budget that started all this mess, saw equity release hit new heights. 2022 figures for lending jumped 27 per cent from the year before and a total of £5.8bn was released nationwide – a new annual record.
What’s more, sales totals shot up along a similar trajectory with a 25 per cent jump compared with 2021.Of course, the impact of Kwasi and Liz’s brainchild budget will be felt more considerably this year as interest rates will remain higher than is ideal, but we must look at this in a historical context.
The lifetime mortgage has solidified itself as a vital option for retirees looking to create the retirement they have always wanted, and a little rough patch is not going to stop that. I believe equity release will sail through these choppy waters and come out the other side. I’m sure of that – after all we have proven to be a resilient bunch.
