Partnership takes advantage of increased equity release demand

Financial services provider Partnership has decided it will expand its product offering by entering a new market. The company plans to launch its first equity release product before the end of 2010.

However, managing director of retirement products at Partnership, Andrew Megson, told Money Management that the company is not planning to become a large-scale equity release provider. Instead, it will focus on one specific niche; providing products that are specifically aimed at individuals with lifestyle impairments. By sticking to this niche, the company believes it will be able to take advantage of rising demand for equity release products while building on its proven expertise.

According to Mr Megson, the equity release sector is starting to find its feet again, having been through a rocky patch for some time. Nevertheless, the company is aware that increased demand for equity release products is also linked to a drop in the number of firms involved in the market. Figures from equity release trade body Safe Home Income Plans (SHIP) show that its membership fell from 21 providers to 14 in 2009.

However, for companies that are returning to the equity release market, such as More 2 Life, and those entering it for the first time, this could be a distinct advantage. Supply, Mr Megson suggests, is currently unable to meet demand.