The Equity Release Group (ERG) predicts that the market recovery will span several years despite current optimism.
- ERG has seen a remarkable 102% rise in inquiry volumes and a 52% increase in lending applications over the past year.
- Factors influencing this situation include recovering house prices and retirees exploring options amid rising costs and potential tax changes.
- The forthcoming Autumn Budget announcement is causing some trepidation, impacting retirement planning decisions.
- ERG focuses on providing accessible, transparent advice, emphasising technology and market comparison.
The Equity Release Group (ERG) has projected a prolonged recovery period for the market, despite a general uptick in confidence. Over the past year, ERG experienced a 102% increase in enquiry volumes and a 52% rise in lending applications. This surge reflects optimism within the industry; however, ERG warns that a complete recovery is likely still years away.
Several contributing factors have been identified by ERG, including a rebound in house prices earlier in the year. This shift has prompted many retirees to assess their financial options amidst escalating living costs and an impending shift in tax policies.
The anticipation surrounding the 2024 Autumn Budget, as articulated by Prime Minister Keir Starmer and Chancellor Rachel Reeves, has introduced an element of uncertainty. Many individuals are revisiting their financial strategies, particularly concerning retirement, and equity release emerges as a viable alternative.
Mark Gregory, founder and CEO of ERG, emphasised the need for accurate comparison of later life lending products. The potential tax reforms, especially those related to Capital Gains and Inheritance Tax, mean that releasing property wealth remains an attractive, tax-free option.
Data from Q3 reveals an uptick in ‘additional borrowing’ and ’emergency funds’ utilisation, highlighting the current market sentiment. At the same time, there has been a reduction in gifts to family, pointing to an increased need for liquid assets to address immediate financial concerns.
ERG has adapted its approach to meet these evolving consumer needs by fine-tuning its marketing and engagement strategies. By enhancing efficiencies and reducing lead costs by 85%, ERG is able to generate more leads while maintaining a transparent and independent customer journey. The company’s commitment to accessibility and technology-driven solutions aims to provide consumers with comprehensive market comparisons.
In summary, while the market is showing signs of renewal, ERG stresses that a complete recovery remains a distant prospect.
