Value of new business written 4% ahead of Q1 2005

The nineteen members* of UK equity release body, SHIP (Safe Home Income Plans), that represents over 90% of the Equity Release sector, today report second quarter figures to 30 June 2005 that reflect continued steady growth.

The value of new business written was £260.9 million, 4% ahead of the first quarter in 2005 (£251.4 million).  For the half year to 30 June 2005, the value of new business is up 2% on the same period last year (2004 HI: £503.7 milllion, 2005 HI:£512.3 million).

The value of Lifetime mortgage business written in the second quarter of the year was £250.3 million, 96% of the total, while the value of Home Reversions written business was £10.6 million, 4% of the total.

Jon King, Chairman of SHIP said:

“The second quarter figures show continued steady growth in the equity release sector as customers continue to benefit from a variety of schemes that allow them to access the wealth accumulated in their property.

“Total sales this year are on track on equalise those of 2004, at approximately £1.2 billion. We believe that the market is likely to develop further as the benefits of FSA regulation build further confidence in it, and consumers benefit from the ever widening choice of new suppliers and products. Flexible equity drawdown products launched this quarter have proved very popular.”

SHIP new business figures