Equity release growth expected
By 2008, one in eight IFAs expect to generate between 10% and 20% of their annual income through equity release and a further one in twelve believe these products will contribute 20% or more. Only one in five are not expecting any growth.
Commenting on the research, Stuart Robinson, consultant at Tillinghast, said: “Our research shows that 40% of IFAs are currently not generating any income from equity release and of those who are, the vast majority are not selling many products. However, many clearly believe this situation is changing and there is considerable evidence to support this.”
Around £313 million was released through equity release schemes in the first six months of 2002, according to Tillinghast – an increase of 33% on the same period in 2001. At the moment, Tillinghast believes the equity release market to be worth around £750 million but it has the potential for £4 – £5 billion of new business each year.
However, Tillinghast's research highlights a number of potential obstacles to realising the full potential of the equity release market. For example, one in two IFAs believe the public image of the industry needs to be raised and in some cases improved.