Optimism for future equity release growth at LV=
New research from equity release specialist LV= reveals that 98% of independent financial advisors (IFAs) believe equity release will be a significant future growth area and will be crucial in meeting the needs of the UK’s ageing population.
The research, carried out among IFAs at LV=‘s equity release roadshows in May revealed the main factors behind this predicted growth.
The most popular reason (48%) given was a shortfall in pension provision. This was followed by the desire to pay off existing debts such as credit cards and mortgages (30%), and home improvements and the funding of domiciliary and long-term residential care (9%).
More than two-thirds of IFAs also expect to see more providers re-enter the equity release market during the next year, with 10% saying that a lack of providers in the market is one of the barriers to selling more equity release.
Vanessa Owen, LV= head of equity release, said: “It’s encouraging to see the majority of IFAs believe that equity release has a strong role to play in helping to solve problems such as the funding of long-term care and a lack of pensions provision in retirement.
“For many people, their home is their greatest asset so it is understandable that more and more people will want, or need, to access the equity in their home.”