In its latest IFA confidence report, Hodge Lifetime found that just 2% of IFAs questioned felt that the RDR would lead to a decrease in sales when it comes into place in 2012. Sixty-four per cent felt that it would have no effect on sales, and 12% felt that it would actually increase sales.
Suggesting a general atmosphere of confidence in the future of equity release, many advisers also claimed to have seen an increase in equity release applications over the past three months. Most notably, 28% of IFAs that advise on home reversion plans reported a marked rise.
Looking further into 2010 and beyond, findings also highlighted the nature of the use of equity release going forward. While 31% of advisers are now writing up to 50% of their business for clients using equity release for debt consolidation, only 10% of advisers wrote over 60% of their business for this purpose.
Jon King, managing director at Hodge Lifetime commented: “The continued confidence of IFAs and faith in the growth of the sector is encouraging for the equity release market.
“It is also positive to see that while debt consolidation is an mincreasing use of equity release, only a small percentage of advisers are writing a large portion of their business for this purpose, showing that equity release is not always the ‘last resort’ that it has sometimes been portrayed as.”