Findings showed that adviser sentiment was buoyant and the percentage of advisers expecting further growth has risen by 10% from Q3’s 60%.
Helping the feel-good factor around the equity release sector is the expectation of more providers entering the market in 2015. The advisers polled expected an average of two new entrants next year, with more transparent Early Repayment Charges top of the product feature wish list.
A significant proportion of advisers are expecting 2015 to get off to a strong start too with many saying spring is a popular time for equity release enquiries as a result of a desire to overhaul one’s finances at the beginning of the year and following on from discussions with family over the festive period.
More than two fifths (42%) of older homeowners enquiring about equity release have an outstanding mortgage, up from 36% in Q3. The majority are choosing to involve their families in the decision making process, with 73% seeking their advice.
The top three reasons for releasing equity remain unchanged from Q3 with debt consolidation by far and away the most common motivator (44%). The percentage of those accessing property wealth for home improvements has increased over the past three months and now occupies joint second spot with the increased cost of living (both 17%).
Geoff Charles, CEO of Bower Retirement Services, said: “Far from being complacent after such an encouraging year the majority of advisers expect further growth both in the coming months and longer term.”
