Intermediaries sold £193.3m of plans in Q4 2011 compared to direct sales of £22.6m. This is the highest number of plans sold via intermediaries since SHIP first began tracking sales data in 2003.
Despite this, the total value of plans sold in 2011 stood at £788.6m, down from £803.6m in 2010. SHIP said this was down to fewer providers in the market due to consolidation.
Total advances of £215.9m were made by SHIP members in Q4 2011, the highest level since Q4 2009 where total advances stood at £231.7m.
The data also showed that drawdown accounted for 62% of the market in Q4 2011, followed by lump-sum mortgages at 36% and reversions at 2%.
Andrea Rozario, director general of SHIP said that it expects a strong year ahead for the equity release market.
“We are delighted to report that not only did total advances reach a two-year high in Q4 2011 but this is the third quarter of growth in equity release sales. This is excellent news and puts the industry on track for a strong 2012.”
She added that SHIP intends to announce the outline of the new trade body, which will be expanding its membership to include intermediaries, solicitors and other interested stakeholders, by the end of Q1 2012.
