SHIP: equity release sector grows 4%

Equity release trade body SHIP has posted improved results for the third quarter of 2010.

During this period, the equity release market increased in value by 4% to £205 million from £196.7 million during the second quarter. The average equity release value rose more than £1,000 to £46,754 from £45,702 during the second quarter.

Drawdown mortgage sales now account for 57% of the entire equity release market compared with 56% during the second quarter. Lump sum products account for 41% of the market compared with 42% during the previous quarter.

Andrea Rozario, director general of SHIP, said: “We are delighted to see that the equity release market has returned to growth with the largest quarter on quarter increase since mid-2008.

“The financial services industry has had a tough couple of years and this move clearly illustrates increased customer demand.

“It also shows that the work undertaken by SHIP and its members to increase the wider acceptance of this product range is having an impact.”