Three local councils are to begin running an equity release pilot scheme provided by Just Retirement

Three local councils are to begin running an Equity Release pilot scheme provided by Just Retirement that will allow home owners to release small amounts of cash using the equity in their homes.

The ‘Home Cash Plan’ pilot, being launched in association with the Joseph Rowntree Foundation, will be run by local authorities the London Borough of Islington, the Royal Borough of Kensington and Chelsea, and Maidstone Borough Council.
The pilots will run until summer 2011 at which point each will be reviewed by the Joseph Rowntree Foundation.

Just Retirement says that it predicts the sums being released to be smaller than an average equity release mortgage. Just Retirement believes the relative size of the advances should allow home-owners to withdraw equity from their homes without compromising their entitlement to pension credit.

Roger Pangbourne, head of compliance at Just Retirement Solutions, says: “The pilots will allow those who have been historically disenfranchised from the fully regulated equity release market to access advice and a product designed for their needs.

“Just Retirement is delighted to be part of this innovative scheme and looks forward to a successful outcome for the pilots next year.”

The scheme has been developed in conjunction with SHIP (Safe Home Income Plans), the industries trade body.

Andrea Rozario, director-general of SHIP, says: “There are a great many asset-rich but cash-poor pensioners in the UK who could really benefit from this type of product and we fully support these organisations in their steps to fill this real and growing need in the market.”
A final report on the schemes will be produced in July 2011.