LV= sees a bright future for equity release

New research carried out at the recent LV= equity release road shows revealed that independent financial advisors (IFAs) believe equity release will become a big growth area in the future.

Research among IFAs that attended the road shows, which took place in various cities around the UK in May, showed that 98% believe there will be a surge in consumers using equity release over the next few years. More than a third (35%) said that equity release is already a core part of their businesses.

The IFAs in attendance cited a shortfall in pension provision as the top reason for the growth, with funding to make home improvements and being able to help family onto the property ladder the next biggest motivators. When looking into long term care planning, 88% of IFAs indicated that they believed equity release could be the best option for people needing to fund long-term care in the home.

Vanessa Owen, LV= head of equity release, said: “Advisers can clearly see the importance property will play in people financing their future in and around retirement, and a large number of IFAs now class equity release as core to their business.

“Releasing the money locked in a home can, under the right circumstances, be a lifeline for cash poor, asset rich people in or at retirement. With people living longer and healthier lives many will want a cash injection to help pay for a standard of living they have grown used to in their working lives as well as paying for home improvements, dream holidays or medical care.

“People’s homes are often their greatest asset, so it makes sense for them to be able to access that capital when they need it.”