With such intervention almost half (47%) of advisers believed the industry would return to trading levels prior to the 2008 house price crash.
Sales of equity release reached £1.2bn in 2007, while the current market value is £788.5m.
Andrea Rozario, director-general of SHIP said: “We have seen far more engagement with the government than we could have hoped for over the past few years, and hope this will continue in the future. The ultimate goal is for a government department to take ownership of equity release, and we believe with sustained lobbying this will happen.”
SHIP recently told Mortgage Solutions that it is looking towards the Treasury to facilitate what it wants in the long run.
Meanwhile, a poll of 2000 over 45s by Key Retirement Solutions found over a third think government tax breaks, such as a lower rate on income generated through equity release would encourage them take out a plan.
Dean Mirfin, group director at Key Retirement Solutions said: “You can do things to encourage particular, positive behaviour. Government could say, if you release equity and some of that equity is used to buy a guaranteed income, [such as] an annuity, we will give you tax relief on that.”
“Such an incentive could prevent people falling back on the state for financial support in retirement.”
He also said government needed to spread awareness of equity release, but “not a resounding endorsement, a recognition that the product is here and viable.”
“It is very easy to say if the government supports something; it will make it all work. The government supports some things that actually create a backlash, where people do not necessarily trust them. So we wanted to start to get a gauge on what the public’s view would be, if the government was more supportive.
“From that sample, it’s a good indication that government needs to play a more important role.”
