After years of campaigning, Safe Home Income Plans (SHIP), the trade body representing over 90% of the equity market, today welcomed the official regulation of home reversion schemes for 6th April.

Since the regulation of lifetime mortgages in October 2004 SHIP has worked hard to bring home reversion schemes under the same regulation and enhance consumer protection across the whole of the equity release market. Without equivalent regulation for these schemes SHIP strongly believed that both the consumer and the adviser remained at an unfair disadvantage.

Some industry experts hypothesise that there has been a pent up demand for home reversions for the past two to three years and, had these products been regulated, predict that at the end of 2006 home reversion schemes would have added another £100 million to the market and brought full year figures to £1.2 billion. From today it is hoped that this demand can be embraced and will fuel a renewed interest in equity release amongst consumers.

The regulation of the home reversion product created a balanced and regulated equity release market meant that consumers can be sure to receive fully considered advice regarding the best equity release plan for them. Advisers will be obliged to advise across both products, significantly improving customers choice obliged to advise across both products, significantly improving customer choice.

Jon King, Chief Executive of SHIP, commented:

“SHIP welcomes the regulation of home reversion plans and has spent many years campaigning for this change. However, it must be remembered that whilst regulation offers a fundamental step towards creating a level playing field for equity release providers and consumers, this alone cannot make quality products safe. It is, therefore, important that SHIP continues its work by striving for the highest standards across all types of plans.”