Advisers are echoing Association of Mortgage Intermediaries chief executive Robert Sinclair in predicting significant growth in the equity release market.
Key Partnerships data shows that two thirds (65%) of advisers expect more equity release enquiries over the next two years, while 44% think pension freedoms will bring more business.
Last year Sinclair predicted the equity release market to grow from £1.4bn in 2014 to £5bn in 2020. He said: “I’ve always said that the equity release and lifetime’s time will come and we’re reaching the point now where by necessity it is going to happen.”
Advisers still reckon more needs to be done however, as three quarters (77%) believe the government should consult with the financial services industry to ensure that equity release can become more integral to long-term financial planning.
Will Hale, director at Key Partnerships, said: “Equity release is seen as one of the major growth areas for advisers as pension freedoms lay the foundations for expansion with the tax advantages of using property wealth a major boost.
“However advisers need to plan ahead on how they expand into equity release and it is important that they seek specialist support. Not all advisers want to specialise in equity release but are aware that they should be offering access to advice for their clients.
“Advisers can refer their clients to us and ensure they will receive face-to-face advice from the UK's leading equity release broker which takes all of the regulatory and compliance worries away, while helping maintain a valuable client relationship.”
