Providers believe a negative perception of the industry has prevented participants and consumers from becoming involved in the sector.
SHIP said 38% saw reputation as the biggest challenge that providers needed to overcome when speaking to consumers, funders and intermediaries while 25% said providing funding for equity release had yet to become a priority for many institutions.
Providers believe the market will stay at 2009 levels rather than shrink. On a positive side, 60% believe additional funding streams will open up, 60% believe the Government will become more involved in the market and 40% believe new entrants may enter the market.
To encourage a future vibrant equity release sector, products which fulfil a growing consumer need was cited by 58%, a high level of regulation was chosen by 21% and 5% said an increasing political awareness of the importance of equity release was needed.
Andrea Rozario, director general of SHIP, said: “It is a concern that our members still find that a negative perception of equity release is affecting the number of consumers who can benefit from these products. On a more positive note, given lack of funding has been a serious issue for some of our members, we are pleased to see that many providers feel additional funding will be achieved in 2010.
“With more and more institutions looking for solid long term investments, we hope that more will take a serious look at the benefits of equity release assets,” she added.
The survey of SHIP members took place in December 2009 and January 2010.
