Norwich Union research has highlighted IFAs’ attitudes to the equity release market.
Norwich Union research has highlighted IFAs’ attitudes to the equity release market.
The research shows that 70% of IFAs who regularly write equity release business expect the market to keep on growing. More than a quarter (27%) say lower returns from investments and pensions will fuel the market while 27% say rising house prices will boost demand.
Increasing numbers of people affected by inheritance tax are likely to increase demand and 10% of advisers expect equity release to become more popular for inheritance tax planning. Another 10% expect it will be used by customers simply trying to make ends meet.
Some 38% of IFAs surveyed believe public awareness and confidence in the market is vital to increasing the amount of equity release business they write. Nearly all financial advisers (92%) back government plans to regulate home reversion schemes.
Mark Kelly, director of Norwich Union Personal Finance Ltd, said: "We expect that the equity release market will continue to grow as people look at different ways to maintain their lifestyle in retirement. Public confidence in equity release is crucial to the growth of the sector and that is why Norwich Union has lobbied consistently for the FSA to regulate lifetime mortgages and reversion plans."
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Notes to editors
Figures from Norwich Union survey of 200 IFAs. 200 CATI interviews were conducted with IFA business writers selected via the Matrix database. Each interview took on average 12 - 15 minutes to complete. Interviewing was spread across the 3 months as follows: May - 63 interviews, June - 68 interviews, July - 69 interviews.
Norwich Union is the market leading equity release provider with a market share of 41% (source Safe Home Income Plans Q2 2004).
Norwich Union’s equity release plans are lifetime mortgages secured on your home. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.
Minimum property values apply.
Full written terms and conditions are available on request. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media