The report, ‘Please release me! A review of the equity release market in the UK, its potential and consumer expectations’, examines the current state and future direction of the equity release market in the UK.
The research explores the issues that may have restrained the UK market including the fact that government view that equity release has limited relevance as it cannot help the poorest and the negative press coverage on past difficulties in the market.
The CML which looks at why the equity release market has developed more slowly in the UK than in the USA, Australia and New Zealand.
While fundamentals such as growth in housing wealth, an aging population and potential pension shortfalls mean there is huge potential for the UK equity release market, the sector has so far seen only steady growth.
The report reviews research in Australia which shows changing consumer attitudes to equity release with younger households more comfortable drawing on their housing assets are less worried about inheritance.
In the US, the government has played a key role in developing the market by guaranteeing lenders against any loss through some equity release products.
Peter Williams, author of the report, concluded in the report: “Demand for equity release products could be speeded up and extended if government played a more creative and active role around the issue of helping homeowners access the value of their homes.
The government should recognise that, given its concern to build a society in which ownership of assets is a priority, it should help create and sustain ways in which people can exploit these assets.”
