The sector has been affected by the recent housing downturn - but a new consultation aims at strengthening equity release for the future.
The latest stage of an industry consultation which could revolutionise the equity release loans sector has been announced by SHIP.
In a statement released yesterday, the trade body called for submissions for its investigation into how to strengthen the market. Equity release, which sees homeowners take out loans secured on the value already built up in their home through mortgage repayments, has been affected by the recent credit crunch-induced housing downturn.
The value of the typical UK property has dropped by almost 20 percent over the past year, a process which has eaten into the equity stored in people's homes. Despite this negative trend, SHIP suggested yesterday that the market had proved "resilient" - and that the consultation would help to ensure the "future success" of the sector.
Andrea Rozario, director general of SHIP, commented: "The knowledge and experience held by intermediaries, advisers and firms operating in this sector is essential in helping SHIP to identify issues experienced by both the customer and the adviser and whilst equity release has been fairly resilient in 2008, the likely increase in the customer need for this product must be recognised with existing barriers correctly identified to allow clearer understanding and access for customers to an increasing array of flexible products."
The next stage of the consultation will see SHIP submit a Discussion Paper on equity release to the government in the summer.
Insurers Norwich Union and Prudential are the biggest and second-biggest equity release providers in the UK respectively.
