Equity release will be an increasingly important part of retired peoples’ income, according to The Joseph Roundtree Foundation.
Its report, The Needs and Aspirations of Older People Living in General Housing, pointed out that home ownership among the retired is set to exceed 73% by 2011. The report states: ‘In 1995, just over three-fifths of households headed by someone of 65 and over were owner-occupied, compared with 46% in 1971.’
Jon King, chairman of Safe Home Income Plans, said: ‘You cannot hide the fact that by 2020, 40% of the population will be over 60. Combine that with the property-owning figures from the report and there will be a lot of people in their own homes. Many of these people will be able to get real benefit from the equity locked up in their homes.’
He added: ‘Brokers who are switched on to the market are already looking at equity release. This is a sector that is growing by demand, it is not product led, and brokers would do well if they investigated serving that demand.’