Andrea Rozario, Director General of SHIP, the trade body for equity release, comments on Government plans to help elderly people downsize from their properties, as outlined in Grant Shapps’ comments published in The Telegraph – http://www.telegraph.co.uk/news/politics/9019124/State-to-help-elderly-downsize-as-Government-tackles-housing-crisis.html

“It is clear that there is a scarcity of housing for young families, and the Government are right to look at how this problem can be solved.  However, whether this is a viable option is still doubtful and these plans raise more questions than answers at present.

“There is likely to be a huge cost attached to this scheme, not to mention the high level of administrative work that will need to be done around it.  As the Government have made it clear that no-one will be forced into taking part in the scheme, it does beg the question of how many older people will choose to leave their family homes which they are likely to have emotional ties to and move into a smaller property – potentially away from family and friends?

“The plans suggest alternative accommodation such as sheltered housing, but this may not be desirable to many people.  Older people may well want to consider downsizing, but on their own terms and with the ability to take the money released immediately – or else look at alternative options such as equity release, which will provide them with a boost to their retirement income, while enabling them to remain in their home. However it is clear that more choice needs to be available and this step may help to offer other options for those considering where they wish to live in their retirement”