The Equity Release Council (the Council) has announced the appointment of Caroline Barr as an Independent Non-Executive Director to support the next stage of its strategic growth.

Caroline has nearly 30 years of experience across financial services and government, including at Lloyds Bank, Deputy Director at HM Treasury, and a member of the Financial Services Consumer Panel. She currently holds non-executive positions as Chair of the British Insurance Brokers’ Association and with BlackRock Life, where she also chairs key industry committees.

Caroline brings extensive expertise in consumer protection, regulatory policy, and financial governance, and will provide independent oversight and strategic guidance to the Council as it continues to promote high standards and consumer confidence in the later life lending market.

Caroline’s appointment reinforces the Council’s mission to build a sustainable and trusted market that delivers real value for consumers and members alike. Her experience will support the Council’s four strategic themes of championing consumer interests, answering society’s challenges, speaking with one voice, and fostering trust to enable growth.

The Council’s purpose is to empower more people over 50 to make informed choices about their property wealth by promoting trusted and transparent products and advice. By setting standards that go above and beyond formal regulation, the Council unites industry, regulators, and policymakers to explore the role of property wealth in later life financial planning. Its logo has become recognised across the industry as a mark of quality, trust, and positive consumer outcomes.

David Burrowes, Council Chair said, “I am delighted to welcome Caroline to the Council’s Board. Her appointment adds additional breadth and independent perspective to our governance at a time when the later life lending market continues to evolve. Caroline’s expertise in consumer protection and regulatory policy will help ensure we maintain our focus on responsible growth, strong standards, and positive outcomes for customers across the sector.”

Caroline Barr, Council INED commented, “I am honoured to join the Equity Release Council at such an important time for the later life lending market. The Council’s commitment to consumer confidence and high professional standards aligns closely with my own values. I look forward to working with the Board and members to build on this strong foundation and help ensure equity release continues to be recognised as a safe, flexible, and trusted option for older homeowners.”

ENDS

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market with around 800 member firms and 1,845 individual members. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; secure tenure for life; the right to port; the right to make overpayments and no early repayment charge if you move into care provided a medical certificate is provided. In the UK, these safeguards are underpinned by mandatory independent legal advice, which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; email [email protected]

New joint statement sets priorities for the market ahead of 2025 Later Life Lending Summit in Sheffield

The Equity Release Council (the Council) and the Association of Mortgage Intermediaries (AMI) have today launched a new joint statement, “From Designing to Delivering the Future: From Summit to Shared Commitment,” outlining a coordinated approach to tackling the challenges facing the later life lending market.

The statement, developed following insights from the 2024 Later Life Lending Summit, the Fairer Finance 2025 report, and the FCA’s Mortgage Rules Review (DP25/2), identifies key priorities for the industry, including:

• Delivering holistic, needs-based advice
• Building a more unified advice culture
• Ensuring proportionate regulation under Consumer Duty
• Improving transparency and consumer understanding
• Harnessing technology responsibly to support advisers

The shared commitment provides a framework for practical action, including strengthening adviser education, creating structured referral and collaboration models, engaging with regulators and government, and promoting the responsible use of technology and data.

Highlighting the 2025 Summit
The joint statement will be formally launched at the 2025 Later Life Lending Summit, taking place in Sheffield on 6 November, supported by lead sponsor Adlington Law. The Summit will bring together advisers, lenders, solicitors, technology firms, policymakers, consumer representatives, and trade bodies to discuss the shared commitment and translate it into practical outcomes for the market.

Jim Boyd, CEO, Equity Release Council, comments: “This shared commitment marks an important first step as we develop a roadmap for the future of later life lending. The 2025 Summit gives the industry an opportunity to turn these priorities into practical action, ensuring consumers continue to benefit from trustworthy, innovative advice.”

Stephanie Charman, CEO, AMI, comments: “AMI and the Council each bring unique strengths to the later life lending market. By combining AMI’s broad reach across the mortgage sector with the Council’s specialist focus, we can achieve more together than either of us could alone. This collaboration ensures advisers are better supported to deliver joined-up, needs-based advice that meets the evolving needs of customers throughout later life.”

Carol Nuttall, Director and Solicitor, Adlington Law, comments: “We are proud to support the Summit as lead sponsor. Collaboration across the sector is essential to raise standards and ensure customers and their families have access to advice and solutions that give confidence and security for the future.”

The full joint statement, “From Designing to Delivering the Future: From Summit to Shared Commitment,” is available to view and download here.

Delegates and industry stakeholders are invited to join the 2025 Later Life Lending Summit on 6 November in Sheffield to explore these priorities and help turn shared intent into practical action. Registration and further information are available at www.laterlifelendingsummit.com.

ENDS

About the Equity Release Council (The Council): The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards, underpinned by mandatory independent legal advice to ensure customers understand the implications.

More information: Visit www.equityreleasecouncil.com; email [email protected]

About AMI: AMI exists to support the professional mortgage intermediary. To do this we effectively lobby the Treasury, FCA, government and other opinion formers to ensure the regulatory and business environment is positive toward the intermediary. It is AMI’s objective to play a critical but constructive role within the mortgage regulation process, offering insights from the “front line” of the intermediary mortgage market. AMI is a non-commercial, not-for-profit trade body. It exists solely to bring about a better business environment for our members so they can continue to serve their clients.

More information: Visit www.a-m-i.org.uk

Email: [email protected]

The Equity Release Council (the Council) has welcomed My Care Consultant (MCC) as its latest professional partner for care-related information, education, and member support. The collaboration will help firms avoid the common pitfalls the UKs care systems present, which can result in foreseeable harm. Both organisations are focused on equipping advisers with high-quality support and education so they can better meet the needs of customers in later life. This partnership comes at a time when later life planning is becoming increasingly complex and demanding.  

The partnership aligns with the Council’s broader commitment to professional development, including its collaboration with LIBF, part of Walbrook Institute London, which provides members with discounted access to the Certificate in Long Term Care and Later Life Planning (CertLTCP.) These initiatives help advisers continue their learning, achieve valuable qualifications and strengthen their expertise.  

Earlier this year, advisers highlighted the challenge of care-related conversations, with 60% identifying it as their biggest training need. The Council had already expanded its product standards in May 2025 to cover more care scenarios, waiving early repayment charges not only when a customer moves permanently into a care home but also when care is provided by relatives, subject to terms and conditions.    

The new partnership with MCC will give advisers access to additional tools, resources and education, helping them approach long-term care conversations with greater confidence as part of the equity release process.  

The Council understands the vital role of both regulated ‘paying for care’ advice and unregulated care guidance, showcasing examples of best practice while also drawing attention to the risks when the right support is missing.  

Jim Boyd, CEO of the Equity Release Council, said: “We are pleased to welcome My Care Consultant as a professional partner. Finding care solutions which meet the needs of our rapidly ageing population has never been more important, with many people wishing to fund adaptations to their homes, such as building a downstairs bathroom or to pay for additional care services.  

“Our research has shown 67 per cent of over-50s are determined to remain in their own homes if they ever need care in the future. This desire grows stronger with age and is shared by 76 per cent of people aged 70+*.   

“My Care Consultant’s expertise will help advisers address one of the most pressing challenges in later life planning: how to integrate care considerations into financial advice.  

“This partnership reflects our ongoing commitment to providing advisers with the knowledge and resources they need to deliver good outcomes for older people.”   

Jacqueline Berry, Founding Director of My Care Consultant, added: “My Care Consultant has observed a significant increase in the use of later life lending to pay for or top up care, typically at home. Whilst property wealth plays an important role in affording people choice, quality and control over their care, there are important considerations when it comes to determining how its use may impact upon entitlements to other forms of financial support.    

“We are thrilled to be partnering with the Council at such a pivotal time to support advisers and their clients and avoid foreseeable harm. By combining our specialist knowledge with the Council’s extensive reach and influence, we can collectively elevate standards and help shape how later life lending advice integrates with care planning.”  

John Somerville, Director of Financial Services, at LIBF said: “Continuous professional development is vital to ensuring advisers have the skills and confidence to meet the evolving needs of later life customers. With growing demand for advice in areas like care and retirement funding, there are huge opportunities for advisers who invest in their learning to deliver better outcomes and strengthen long-term client relationships.”  

ENDS 

* Independent research on behalf of the Council among 2,505 UK adults aged 16+, conducted January 2021. 

About My Care Consultant: My Care Consultant is an award winning, independent, nationwide service to members of the public, guiding them through the confusing and complex UK care systems, and helping them to navigate a clearer, less stressful path towards affordable and suitable care. It works closely with financial advisers throughout the UK, providing expert support to their clients who are either family carers or in need of care themselves. 

My Care Consultant is proud to be an Affiliate Member of the Society of Later Life Advisers, an Affiliate Member of The Consumer Duty Alliance and a supporter of the Charter of the Financial Vulnerability Taskforce. 

More information: https://mycareconsultant.co.uk  

About LIBF: LIBF, part of Walbrook Institute London, is a leading provider of financial education and professional development, supporting individuals and organisations across the banking, finance, and advice sectors.   

More information: Visit https://www.walbrook.ac.uk/   

About the Equity Release Council (The Council): The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards, underpinned by mandatory independent legal advice to ensure customers understand the implications.   

The Equity Release Council published its ‘Solving the Social Care Funding Crisis’ report in 2021 – with contributions from policy makers and across the sector to provide perspectives on the contribution of property wealth.  

https://www.equityreleasecouncil.com/documents/solving-the-social-care-funding-crisis-perspectives-on-the-contribution-of-property-wealth/  

More information: Visit www.equityreleasecouncil.com; email [email protected]  

The Equity Release Council (the Council) has welcomed Defaqto, one of the UK’s most trusted sources of financial product and market intelligence, as its newest member.

Defaqto maintains the UK’s largest financial product database and uses proprietary research methodology to produce independent ratings, reviews, insights, and technology for the financial services sector. Its data and analysis are widely used by advisers, lenders, and consumers to compare products and make informed financial decisions.

This collaboration comes at a time when the later life lending market is set for significant growth. The independent Fairer Finance report estimates that over half of UK households (51%) will need to access housing wealth to support spending in later life, potentially unlocking £23bn annually (in today’s money) by 2040. Defaqto’s membership will enable it to work closely with the Council’s product design and innovation forums, ensuring its data and Star Rating criteria reflect the latest market developments, and help advisers and consumers navigate a rapidly evolving lending landscape.

Jim Boyd, CEO of the Equity Release Council, said:

“We welcome Defaqto as a new member of the Council. Their expertise in product intelligence and independent ratings will help ensure equity release products remain transparent, competitive, and aligned with consumer needs. This collaboration will support our shared goal of upholding high standards in this important sector.”

Katie Brain, Insight Consultant for Banking at Defaqto, added:

“The Equity Release Council is integral to the later life lending market, so it makes perfect sense for us to join. We’re excited to contribute, particularly in forums dedicated to product design and innovation. By ensuring our data and Star Rating criteria reflect the latest developments, we can help advisers and consumers make smarter financial decisions.”

ENDS

About Defaqto

Defaqto is one of the UK’s most trusted sources of financial product and market intelligence, supporting financial institutions, intermediaries, and consumers to make smarter decisions. It maintains the UK’s largest financial product database and uses proprietary research methodology to develop independent ratings, reviews, insights, and technology.

Read more: www.defaqto.com

About the Equity Release Council

The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards, underpinned by mandatory independent legal advice to ensure customers understand the implications.

More information: Visit www.equityreleasecouncil.com; email [email protected]

The Equity Release Council (the Council), in collaboration with Inclusive Outcomes, has today published a sector specific review of approaches to vulnerability in later life lending. The report recognises the strong foundations already in place and offers practical tools to help firms build on this work and embed consistent good outcomes across the market.

Titled Later Life Lending and Customer Vulnerability, the report brings together examples of good practice, real-life case studies, and strategic priorities to help firms navigate complex situations with confidence. It encourages the sector to continue raising the bar by integrating vulnerability considerations into advice, product design, and customer service – recognising the importance of doing so given the age profile of customers and the potential for cognitive decline in later life.

Key areas of good practice already being delivered across the market include:

• Structured identification of customers in vulnerable circumstances and data capture: The integration of vulnerability questions into fact-find processes to ensure early detection and tailored support, as well as upskilling teams to identify vulnerability
• Dedicated adviser and staff training: With firms combining annual e-learning, real-time coaching, and role-specific training to build confidence and capacity
• Use of vulnerability champions: Front-line advocates supporting colleagues, sharing learning, and surfacing insights to inform broader policy and process improvements.
• Strong governance and escalation pathways: Ensuring that complex or sensitive cases are managed transparently and with appropriate oversight.

The report identifies opportunities to further strengthen consistency when it comes to monitoring and evidencing customer outcomes as well as adapting customer journeys to meet diverse customer needs. The industry was also urged to enhance data sharing across the distribution chain to support joined-up outcomes and embed vulnerability concerns into product and service design, including testing and review.

To meet these challenges, the report brings good practice strategies to life through a series of case studies drawn from real scenarios across advice firms and lenders. Each example provides practical evidence of what good looks like in operational settings — and offers actionable ideas for firms seeking to strengthen vulnerability support within their own organisations.

Having identified areas where support is needed, the Council will launch Safe Steps in November 2025 — a practitioner toolkit designed to embed vulnerability best practice across the distribution chain.

Drawing on the principle that when dealing with a member of the Council, customers should expect trusted, tailored, transparent and thorough support, this in-depth document will feature structured specific guidance for a range of vulnerable circumstances, adviser prompts and real-life scenarios.

Lauren Peel, Senior Partner at Inclusive Outcomes, said:

“The Financial Conduct Authority believes that almost half of UK adults has at least one characteristic of vulnerability so it is vital that sectors and organisations really consider how they can best support their customers. Today’s report recognises the leadership already being shown across the later life lending sector, while offering practical ways to deepen that work. The Consumer Duty has set the benchmark — now we must move beyond compliance to deliver thoughtful, tailored support that reflects the lived experience of customers.” 

Kelly Melville-Kelly, Director of Risk, Policy and Compliance at the Equity Release Council, added:

” The sector has matured significantly in its approach to vulnerability — but the next phase must be about embedding consistency and driving continuous improvement. We know that individuals and organisations want to do the right things but at the moment, there is often a lack of practical, expert guidance to support complex interactions. Safe Steps, launching in November 2025, is designed to fill that gap and give advisers and lenders the tools to turn good intentions into confident, informed action.”

-ENDS-

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; secure tenure for life; the right to port; the right to make overpayments and no early repayment charge if you move into care provided a medical certificate is provided. In the UK, these safeguards are underpinned by mandatory independent legal advice, which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

Members can read the full report here, while non-members can access the condensed version here.

London, 17 June 2025: The European Pensions and Property Asset Release Group (EPPARG) and EY have today published the third edition of its Global Equity Release Survey report. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size. The global market is expected to reach $56 billion by 2035, as compared to current volumes of $17 billion.

The report, which covers the period 2024/2025, analyses data received from market leaders across 13 countries internationally with established or developing equity release markets and explores their growth potential. The 13 countries span Europe, North America and Australia, which are among the largest equity release markets in the world.

The survey findings were recently previewed at an EPPARG session on navigating global challenges and opportunities at the Later Life Lending Summit, hosted by the UK Equity Release Council, held in London on 13 May.

The key findings of the survey include the following:

• Global equity release markets continue to be resilient, despite challenging market conditions.
• Over $17bn of equity is currently released each year for homeowners, among the countries analysed. This is set to rise significantly by 2035, when the global equity release market is expected to reach $56bn in annual releases.
• Banks continue to be the most common source of financing for equity release mortgages globally, as in previous years, followed by insurance companies, securitisations and debt.
• Lifetime mortgages remain the most common type of equity release, which are available in the majority of countries covered by the survey, followed by home reversion schemes.
• Equity release products are typically available to customers from the age of 55 or 60 years old, with a mix of fixed and variable rates offered. There is face-to-face contact with the customer in most countries.
• Lump sum products continue to be the most popular product globally, while annuity and drawdown products are available in a number of countries. Combination products, of lump sum and annuity, are starting to emerge in some European countries.
• A lack of knowledge and awareness of the product was regarded as the primary barrier to future growth, followed by funding challenges, notably in European countries, and higher interest rates. It was noted that there is a need to educate both consumers and industry professionals about the benefits and options in the market.
• In markets where a lack of funding is the bottleneck, there was a call for institutional investors to enter the space.

Commenting on the survey findings, Steve Kyle, Secretary General of EPPARG, said:

“The survey results highlight that the global opportunities for equity release markets remain strong and that it continues to offer significant growth potential.” 

“In terms of the drivers of demand, we believe that the challenges of ageing populations in many countries will lead to unsustainable social, economic and intergenerational burdens. We consider that part of the solution is the development of a safe equity release market. A key role in that development is to ensure there are consumer-focused industry standards, which not only protect consumers, but also contribute to an enabling environment to foster innovation and encourage the involvement of new entrants and socially aware funders and investors.

Enabling elderly homeowners to draw on their housing wealth as an asset unlocks significant economic and social benefits, as borne out by the feedback of our EPPARG members across Europe, whether innovative start-ups or more established businesses. Drawing on their housing wealth allows elderly homeowners to enjoy a more independent and comfortable later life, while the money released is often injected directly into the local economy, helping to create jobs, businesses and wider wealth.

The challenges or barriers for equity release, in Europe and beyond, remain raising awareness, ensuring that property assets are part of the pension planning process and getting the funding models aligned to meet future demand, since a lack of funding remains a major barrier to growth in a number of European countries.

As a global report, for completeness, we understand that drivers for demand and opportunities for growth of equity release are strong in the western world, yet we also see the potential for significant growth in India and across Asia.”

David Burrowes, Chairman of the UK Equity Release Council and EPPARG Board Member, said:

“This survey resonates with the Council’s recently commissioned research by Fairer Finance about how housing wealth can bridge the later life funding gap. At the heart of the recommendations and survey is the need for greater customer awareness and increasing consumer confidence based on standards and innovation which support good consumer outcomes.”

Ben Grainger, Partner at EY, said:

“The global equity release market has the potential to transform the retirements of thousands of people around the world. To unlock the potential, the market needs to deepen and more fully establish cross-border collaboration by sharing funding models and sources, and developing better practice customer standards. The progress that has been made to date is encouraging, and we look forward to working with clients around the world and supporting further growth and expansion.”

Steve Irwin, President of the National Reverse Mortgage Lenders Association (NRMLA) of the USA said:

“Ensuring a safe and financially secure retirement for our aging populations is something governments across the globe are aspiring to through public and private-sector innovation. The monetization of home equity is one solution that continues to gain traction as indicated through this very important report. We look forward to continuing our collaboration with EPPARG to share and explore best practices for monetizing home equity for this critically important endeavor.”

The survey report is available at:

https://epparg.org/wp-content/uploads/2025/06/20242025-Global-Equity-Release-Survey.pdf

The report is based on data collected from equity release market players in the following 13 countries: Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Spain, Sweden, the UK and the USA.

— ENDS —

Media Contacts:

Notes to Editors

About EPPARG

The European Pensions and Property Asset Release Group (EPPARG) is the principal trade body representing the interests of home equity release providers in Europe.

Countries with EPPARG representatives or associates make up over 75% of all the countries in Europe with a home equity release market. EPPARG’s membership includes France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Spain, Sweden and the UK.

EPPARG seeks to foster dialogue between industry, EU institutions and governments on innovative pensions and property asset release solutions. The high level aims of EPPARG are the following:

• To encourage appropriate levels of consumer protection and standards across Europe to allow freedom of movement
• To encourage the safe development of equity release as a solution to the ‘pensions gap’
• To work with investors, funders and regulators to promote the development of an enabling funding framework for equity release
• To share best practices across Europe to encourage growth and innovation
• To work towards a recognised quality label or kitemark across Europe.

More information about EPPARG is available at:

www.epparg.org

About EY 

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

About the Global Equity Release Roundtable 

The Global Equity Release Roundtable (GERR) is jointly sponsored by EPPARG, the National Reverse Mortgage Lenders Association (NRMLA) of the US, in collaboration with the UK Equity Release Council, and country representatives cover an estimated 80% of the global equity release market.

23 May 2025: The Equity Release Council is delighted to announce that PriceHubble has joined the Council as an associate member.  PriceHubble is an innovative B2B company that builds solutions for the financial and real estate industries based on property valuations and market insights.

With a presence in 11 countries, including France, Germany, Japan, the United States and the United Kingdom, PriceHubble focuses on helping organisations make property and investment decisions based on data-driven insights.

Providers, advisers and funders are consistently considering how they can use data to build smoother customer journeys and better administrative processes including property pre-qualification which ultimately benefit the end user. The Equity Release Council, which has championed Standards in this market for over thirty years, is committed to helping not only customers but also organisations like PriceHubble that support them.

Jim Boyd, CEO of the Equity Release Council, said “Data plays a crucial role in the later life lending industry with customers relying on advisers and providers to make accurate and long-term decisions based on the anticipated value of their homes.  We are therefore delighted to welcome PriceHubble into membership as their international insights and innovative approach will help to continue to grow a resilient market in the UK.”

Mark Cunningham, Managing Director of PriceHubble, added: “With 22 million people over 50 in England* alone, the UK has a significant and growing later life lending market. We are therefore pleased to join the Equity Release Council and position ourselves to use our high-quality data-driven insights to support the businesses in this important sector as well as the customers they serve.”

-ends-

* = Age UK Analysis of ONS Data – September 2024 – click here

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; no early repayment charge if you move into care provided a medical certificate is provided and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

Older homeowners say trust is the most important quality they look for in an adviser, followed closely by transparency, thoroughness, and tailored service, according to new research by the Equity Release Council (the Council).

Research on 2,000 older homeowners undertaken to mark the launch of the Council’s new Standards 2.0, which include a new Consumer Charter, highlighted the vital importance people place in these attributes.   The new Standards aim to further embed customer protections that go beyond minimum regulatory requirements.

Interestingly, while there were some small differences between the genders and age groups (see appendix I), homeowners over 40 were extremely consistent in the order in which they ranked the importance of advice being trusted, transparent, thorough and tailored.

Higher Standards Matter More with Age:

When asked why they thought it was important for organisations to sign up to standards which go over and above regulations to protect customers, just 4% said it wasn’t necessary as regulation will protect them while 4% said that there was already too much regulation. Instead, 63% believed in additional standards as they wanted as much protection as possible and 56% banked on standards to provide additional support if things went wrong.

These sentiments get stronger as people age with +12% more people over the age of 56 believing that they want as much protection as possible compared to those aged 40-55 and +11% more wanting to know that if anything went wrong, they would receive additional support.

Trust Breeds Confidence:

Older homeowners put significant value on the advice they receive being trusted, transparent, thorough and tailored as they said it made them feel confident (43%) about their decisions and like their needs had been understood (29%).  Just over one in four (27%) said they felt hopeful and more interested (25%) when companies held these values.

Michelle Highman, Chair of the Equity Release Council’s Standards Committee and non-exec director commented: “Customers need to trust their advisers to provide transparent, thorough and tailored support, which is why when we relaunched our Standards, we included a Consumer Charter.  This consumer-facing document clearly highlights what people can expect from a member of the Equity Release Council and encourages people to expect the most from their advisers.

“Making decisions about later life finances can seem big and daunting but with the right advice, people can feel confident and truly understood.  While not all older customers are vulnerable, people are more likely to face circumstances or conditions that make them more vulnerable as they age and therefore need additional support, so they see Standards which are designed to protect them as increasingly important.

“Indeed, two-thirds of homeowners over the age of 65 said that additional standards mattered as they wanted as much protection as possible while 61% wanted to know they would get additional support if anything went wrong.  It is these types of safeguards that will encourage more people to look at all their options in retirement and help to encourage more people to make proactive use of their property wealth as they age.”

-ends-

Appendix I:

In April 2025, 2,000 homeowners aged 40 plus were asked to rate four attributes with 1 being the most important and 4 the least.  This led to the following results with the lowest number being the most important and the highest the least.

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; no early repayment charge if you move into care provided a medical certificate is provided and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice, which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

• Half of UK households (51%) expected to require housing wealth to fund their desired later life living standards
• £23 billion forecast to be unlocked from property wealth each year by 2040
• Fairer Finance sets out five recommendations to Government and regulators to break down barriers including advice reform

Half of UK households (51%) are expected to require housing wealth to support their spending needs in later life and retirement – unlocking over £23 billion, in today’s prices, each year by 2040 – according to new modelling¹ by Fairer Finance. The independent consumer group also forecasts that this shift could deliver a £21 billion boost to the UK economy each year.

Based on levels of pensions and savings alone, almost four in ten (38%) future retirees are heading for an income below the recommended minimum living standard². Yet, on average people in the UK hold more housing wealth than pension wealth³, highlighting a major mismatch between resources and retirement funding strategies.

Report calls for urgent action to break down barriers:

Fairer Finance’s report [How can housing wealth bridge the later life funding gap? | Fairer Finance] calls for urgent action from Government and the Financial Conduct Authority (FCA) to break down the barriers that prevent older homeowners from accessing the equity in their homes, and to integrate housing wealth into mainstream retirement planning alongside pensions.

The report was commissioned by the Equity Release Council. However, Fairer Finance retained full editorial control. As well as considering how later life lending can support more consumers in retirement, it also considers the barriers to unlocking housing wealth through downsizing.

New economic modelling unveiled:

New economic modelling within the report shows the scale of the problem and considers how housing wealth can be part of closing the gap.

Figure 1 below illustrates how people might access their housing wealth to maintain their living standards in 2040. The first peak, at age 65, reflects the initial need for income before people receive the state pension. The second peak is partly driven by some people repaying their residential mortgage in their late 60s. Some people in their 70s, 80s and 90s experience care-related cost shocks, which increases their need for income and therefore usage of their housing wealth.

Figure 1: The value of housing wealth accessed, and the proportion of households accessing housing wealth by age:

Note: 2025 prices. / Source: Fairer Finance.

Report suggests five important policy recommendations:

The report – ‘How can housing wealth bridge the later life funding gap?’– makes five recommendations to regulators and government:

1. Increase housing supply: Build more suitable and desirable homes for downsizing located in the communities where people in later life wish to live.
2. Reduce stamp duty: Cut stamp duty for older people downsizing to encourage mobility and free up larger homes.
3. Normalise the use of housing wealth to maintain living standards in later life: MoneyHelper and Pension Wise should embed housing wealth as a central part of later life advice and guidance. Government and public agencies should invest in public information campaigns to break down the stigma and normalise the use of housing wealth in retirement.
4. Create a single financial view: Government and regulators should develop a personalised service for consumers to see their pension and housing wealth in one place.
5. Reform financial advice: The report calls for the FCA to reform the regulation around later life advice, to break down advice silos and ensure all consumers are supported to maximise the use of all their assets as they approach retirement.

On point five specifically, the FCA should:

• Ensure that equity release advisers are obliged to consider all forms of later life lending.
• Build more explicit consideration of housing wealth into the FCA rulebook, such that financial advisers assess the role that housing wealth may play for customers in funding their retirement.
• Ensure that advice on mainstream mortgages to people from the age of 50 onwards explicitly considers retirement planning, including later life lending options. This may be through referring people to retirement dashboards, midlife MOTs, or other professional advisers which bring together all sources of retirement wealth.
• Allow for targeted support to assist consumers in considering their use of housing wealth as they plan for retirement (whilst ensuring that equity release remains an advised sale).
• Use the levers of the Consumer Duty to ensure the UK has a vibrant and competitive later life lending market, which offers fair value to consumers and creates the conditions for product innovation. In advice markets, the FCA should use the Consumer Duty to eliminate product bias – and ensure that consumers are supported to achieve the best outcomes for their needs, regardless of which part of the advice market they are engaging with.

James Daley, Managing Director at the independent consumer group Fairer Finance, commented: “It’s an inevitability that more people will need to rely on their housing wealth in retirement – and our new research shows the scale of the problem as well as the opportunity. The combination of smaller pensions, increased longevity and rising care costs threaten to create a perfect storm which will leave millions of people unable to maintain their living standards in later life.

“But with around 75% of the population owning a property as they reach retirement, many people are sitting on – and sleeping in – a significant store of wealth. As things stand, there are a number of social, economic and regulatory barriers which stop housing being part of the mainstream retirement planning conversation. For those who want to downsize, there is a lack of suitable and desirable retirement housing. Whilst when it comes to borrowing in later life, the silos in regulated advice markets mean many people are not being presented with all their options. If we’re to head off a later life funding crisis, policymakers need to start taking action to bring down these barriers now.”

Other points to note from the report include:

• In today’s prices, £23bn of housing wealth could be accessed each year, to reach higher living standards. The annual withdrawal would be approximately 0.5% of total housing wealth for those aged 60+.
• The gross value added (GVA) of this spending is worth £21bn to the UK economy (in today’s prices). This would represent approximately 0.7% of total UK GDP in 2040
• 51% of households might access housing wealth to reach their desired living standards during later life. 18% of households aged 60+ might access their housing wealth in 2040.
• Of those that do access housing wealth, the median total amount taken over their lifetime is estimated to be £140,000 (in today’s prices).

[TRADE QUOTE]

Jim Boyd, Chief Executive, Equity Release Council, the representative trade body for the UK equity release market, commented: “Fairer Finance forecasts property wealth taken in the form of later life lending could inject £21 billion into our economy each year from 2040.  This substantial amount has the potential to act as a real economic stimulus supporting businesses and improving the living standards and spending power of our rapidly ageing population. 45,000 UK jobs are already directly funded through money released from bricks and mortar – the growth of later life lending can potentially take this to another level.

“Whether an older person speaks to an equity release adviser, a mortgage adviser or a financial adviser, how they want or need to use their housing equity should be part of the conversation. Today’s report challenges us to develop a system that treats housing wealth as a core part of retirement planning, removes regulatory barriers and gives people the confidence to use it wisely.”

[CONSUMER QUOTE]

Jim Boyd, Chief Executive, Equity Release Council, the representative trade body for the UK equity release market, commented: “Fairer Finance forecasts property wealth taken in the form of later life lending could inject £21 billion into our economy each year from 2040.  This substantial amount has the potential to act as a real economic stimulus supporting businesses and improving the living standards and spending power of our rapidly ageing population. 45,000 UK jobs are already directly funded through money released from bricks and mortar – the growth of later life lending can potentially take this to another level. 

“We know younger homeowners are interested in using money in their homes in later life to meet a range of financial needs as generous final salary pensions all but disappear. Today’s report challenges us to develop a system that treats housing wealth as a core part of retirement planning, removes regulatory barriers and gives people the confidence to use it wisely.” 

For more information on Fairer Finance and to read the report in full, please visit www.fairerfinance.com.

Notes to editors

For further information, please contact:

Karen Mignon, KM Comms: [email protected] / +44 7766 651327

Louise Ahuja, KM Comms: [email protected]/ +44 7788 676913

1 Fairer Finance has modelled the way in which housing wealth can be used to increase living standards in later life. However, this is not a forecast. Rather, we estimate the size of the opportunity if policymakers, regulators, and industry can overcome the barriers that stand in the way of people accessing the value of their home through lifetime mortgages.

The model looks forward to 2040. The model estimates the difference between desired spending and household income in 2040, for the population aged 60 and above. Where the desired spending is greater than the household income, we model the potential impact of people accessing the value of their home through a lifetime mortgage.

We have not modelled the way in which people make the trade-off between their standard of living and their ability to give an inheritance. Some people are likely to choose to accept a lower quality of life, to preserve some (or all) of the value of their home as inheritance. We also do not model the potential for a growth in downsizing to meet consumers’ needs. We have instead focused on the potential role of later life lending in meeting spending needs, whilst acknowledging that people may choose other options.

The modelling suggests that the UK population of people aged 60 and above would access approximately £23bn of housing wealth each year, in 2025 prices. This figure is based on the modelled population in 2040 (adjusted for inflation), and considers only meeting the spending needs defined in the model. Therefore, this figure does not consider the use of housing wealth to meet other needs, such as giving inheritance at a time of the consumer’s choosing.

The housing wealth of those aged 60 is modelled to be approximately £4,300 billion in 2040, so the annual withdrawal would be approximately 0.5% of total housing wealth.

Without this spending, these households would have a lower standard of living. For some households, this might also mean that they claim more means-tested benefits.

Based on the modelling, we estimate that by the age of 90, some 51% of households would have accessed housing wealth to meet spending needs at some point since the age of 60. Our modelling for the year 2040 suggests that approximately 18% of households aged 60+ might access their housing wealth in that year.

Based on the aggregate spending of £23bn enabled by individuals accessing their housing wealth, we estimate that the GVA contribution of this spending. We base this estimate on typical spending patterns of those aged 60 and over. The direct GVA would be some £12bn, with an additional indirect GVA contribution of £9bn. The sum GVA impact of £21bn would represent approximately 0.7% of total UK GDP in 2040.

The report has been developed using 9,720 different household scenarios designed to represent the range of outcomes we might expect for 75% of the whole population aged 60 and above. These outcomes are aggregated – using suitable weightings based on available statistics – to provide UK-wide totals

2 Scottish Widows (2024), ‘Retirement Report 2024’.

3 Office for National Statistics (2025), ‘Household total wealth in Great Britain: April 2020 to March 2022’.

About Fairer Finance

Fairer Finance is an independent consumer group and ratings provider whose mission is to help create a financial services market that is fair for consumers as well as the companies that serve them. With a heritage spanning over a decade, we regularly engage with regulators, government, and industry bodies helping to influence and shape new pieces of legislation and regulation. Our independent economic impact studies inform evidence-based policy.

About the Equity Release Council

The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; no early repayment charge if you move into care provided a medical certificate is provided and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan. 

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, over 688,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

The Equity Release Council (the Council) is delighted to announce that it has launched an international forum – chaired by Yvonne Ziomecki-Fisher (Chief Customer, Brand and Advice Officer at HomeEquity Bank) with Robbert Mulder (Head of European Later Life Solutions at Senior Capital) as vice chair.

The Council currently hosts eight member forums, which provide organisations with the opportunity to discuss developing issues and collaborate on projects that are designed to push the market forward.  As a Standards setter, the Equity Release Council is also able to share best practice as illustrated by its recently launched Standards 2.0.

The International forum has representatives from a range of countries including Canada, Germany, Holland, France, Ireland, Italy and Poland.  The equity release market in the United Kingdom is considered to be the most advanced in the world and the forum serves to bring different countries together to share insights, tackle developing challenges and champion the use of housing equity in later life.

Yvonne Ziomecki-Fisher (Chief Customer, Brand and Advice Officer at HomeEquity Bank) said: “A significant proportion of the developed and developing world are facing the challenge of how to support a rapidly aging population who may not have the retirement savings they want or need.  Housing equity can play a vital role in meeting this challenge; therefore, I am honoured to be named Chair of the Equity Release Council International Forum. Promoting continued high standards of conduct for equity release products is critical to a thriving industry, and to ensuring better outcomes for consumers across the globe. I look forward to supporting this important work and driving progress and collaboration with my colleagues in the Equity Release Council.”

Jim Boyd (CEO of the Equity Release Council) added: “Every advanced economy is facing the same challenges with rapidly ageing populations and inadequate retirement savings. The Equity Release Council has for over 30 years pioneered standards in our sector which are recognised as the global ‘gold standard’, while the UK equity release market is considered the most sophisticated in the world.

“We are delighted to provide a new ‘international’ forum as a member benefit, and we look forward to sharing our knowledge and standards best practice with the international community as well as learn from them.  This type of insight will be vital as we push collectively for more people to have the opportunity to use their housing wealth to meet their needs in later life

Robbert Mulder, Head of European Later Life Solutions at Senior Capital, concluded: “As institutional investors continue to seek greater portfolio diversification, Later Life Assets – such as Equity Release Mortgages and Home Reversions – are gaining traction as a compelling asset class. I’m honoured to have been appointed vice-chair of the Equity Release Council’s International Forum and look forward to encouraging broader discussion on how we can better support a diverse customer base by directing greater investment toward this high-growth, strategically significant international sector.”

ENDS

Notes to Editors

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; secure tenure for life and no early repayment charge if the borrower moves into care and can produce a medical certificate. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

Following a consultation and a significant amount of work from members as part of a range of working groups, we are delighted to announce that Standards 2.0 has been launched today.

Designed to be simpler and easier to understand and engage with, Standards 2.0 builds on the strong legacy of consumer protections built over the last thirty years and introduces a brand-new Consumer Charter (click here) as well as a 6th Standard.

The Charter, which we hope you will use as part of your interactions with customers – clearly outlines why customers can Trust members to deliver Tailored, Thorough, and Transparent support, which ultimately results in them receiving the right outcome for their individual circumstances.

We have also listened to feedback and included a 6th product Standard, which means that if a customer needs to move permanently into long-term care – whether it is in a care home or with relatives – the early repayment charge will be waived by the lender upon receipt of a medical practitioner’s certificate. This will provide surety for more people – especially as the reforms expected in this sector continue to be pushed back.

Standards 2.0 will come into effect from 06 May 2025, and the full suite of documents will become available on our website today, click here. While the documents have been designed to be more accessible, we understand that members may have questions, so we will be hosting a webinar on 29 May 2025 and will shortly circulate a link for those who wish to register.

Developing a new comprehensive suite of documents has taken significant input from across the membership, and I would like to thank everyone who has so generously offered their time, insights, and constructive challenge. It is hugely appreciated, and we look forward to continuing to support customers and safeguard the reputation of the industry with these robust but accessible protections.

However, we do not intend to stop here on our journey to make what we offer consumers as engaging as possible, and our intention is to develop more and better content as well as functionality as we develop our website later in the year.

Should you have any queries, please don’t hesitate to contact Customer Outcomes ([email protected]) for support.

Kind regards,

Michelle Highman
Chair, Standards Committee

The Equity Release Council (the Council) today launches a new version of its Standards which includes a new Consumer Charter and introduces a sixth Product Standard. Effective from 06 May 2025, these Standards set best practice within the equity release industry, providing a higher level of consumer protection than any other form of property-based loan.

· The latest update introduces a new Consumer Charter outlining what customers can expect from Equity Release Council members

· Sees the introduction of a sixth standard, enabling customers to move into a relative’s home to receive care without incurring an early repayment charge

The changes were made following input from eight working groups as well as a consultation with the focus being to make the standards clearer and more accessible while continuing to uphold the highest level of protection for consumers.

New Consumer Charter:

As part of the Standards refresh, the Council is delighted to launch a new Consumer Charter. This document, which members will be encouraged to use with customers, outlines what people can expect when working with an Equity Release Council member. All customers will be able to trust in a tailored, thorough and transparent process that ensures they received the right outcome based on their individual circumstances.

This builds on the work that began when clear consumer-focused equity release product standards were first introduced in 1991. The Standards have continually evolved since then and have been fundamental to establishing trust in the market which has supported almost a million customers over that period.

Sixth Product Standard Clarifies Rules on Care:

Historically, if a customer moved into care in a formal setting such as a care home, the Early Repayment Charge (ERC) was waived. However, the new Product Standard expands this to waive the ERC if the person moves in with relatives to receive care and a medical practitioner’s certificate is provided.

With the number of people aged 85+ expected to grow by 62.7% by 2043*, there is a need for older people to have access to flexible financial solutions in later life to support them through a number of circumstances. In this case, Council members upholding this standard will ensure that later life customers are safe in the knowledge that they can repay their loan when going into care without incurring additional costs.

All Council members are required to adhere to the Standards and principles which safeguard customers by ensuring they are fully informed, and products and services adhere to best practice.

The Equity Release Council Product Standards are:

· Interest Rates: For lifetime mortgages the rate must be fixed for each release or, if variable, the rate must be capped for the life of the loan.

· Home for Life: You must have the right to remain in your property for life or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.

· Option to Move Home: You have the right to move to another property subject to the new property being acceptable to your product provider as continuing security for your equity release loan.

· No Negative Equity Guarantee (NNEG): The product must have a “no negative equity guarantee”. This means that when your property is sold, and agents’ and solicitors’ fees have been paid, even if the amount left is not enough to repay the outstanding loan to your provider, neither you nor your estate will be liable to pay any more.

· Ability to Make Repayments: All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty free payments, subject to lending criteria.

· Long-term Care: If a customer needs to move permanently into long-term care – whether in a care home or with relatives providing care – any early repayment charge will be waived by the Lender upon receipt of a medical practitioner’s certificate and the terms and conditions of the loan have been met

[TRADE QUOTE]

Michelle Highman, Chair of the Equity Release Council Standards Committee, comments: “Significant work went into refreshing the Standards with the aim to make them clearer, more accessible and more consumer focused. Over a 12-month period, eight working groups went through the standards line by line before we consulted with our members and the wider industry to reach the final version. As part of this, we have developed a new product standard and unveiled our first Consumer Charter.

“Customers look to the Equity Release Council to give them confidence to explore whether accessing housing wealth is right for them, and the Consumer Charter clearly outlines what they can expect from our members. We expect them to be able to trust in a tailored, thorough and transparent process that ensures they received the right outcome based on their individual circumstances.

“The Council and our members continually strive to grow our market and ensure that later life lending works for the greatest number of consumers possible. While equity release may not be right for everyone, for many it can be an essential lifeline to achieve the retirement they want and today’s launch means they can continue to do this with confidence.”

[CONSUMER QUOTE]

Michelle Highman, Chair of the Equity Release Council Standards Committee, comments: “For thirty years, the Equity Release Council has worked hard to support customers who want to understand how they can access their housing wealth, and our Standards are a fundamental part of this. Today’s reboot of the Standards is designed to make them clearer, more accessible and more consumer focused as well as provide added protections for older homeowners and their families.

“The new Consumer Charter outlines exactly how people who use a member of the Council should expect to be treated. Consumers should expect that they can trust in a tailored, thorough and transparent process that ensures they received the right outcome based on their individual circumstances. It is designed to help people confidently explore all their options and if they choose to take out a product, it highlights how they will to be treated for the life of the loan.

“We are also excited to unveil our 6th product standard which means that whether a person chooses to go into a formal care setting or receive care in a relative’s home, they will not pay an early repayment charge if they have a medical certificate. With an aging population, more people need care and support, but a care home is not always a person’s first choice, this change gives customers more freedom to find the right option for them.

“A significant amount of hard work has gone into updating these standards and we are pleased that not only do they offer greater protections to customers, but are designed to continue to build trust in this industry.”

ENDS

Notes to Editors

*Age UK, The State of Health and Care for Older People, 2023 https://www.ageuk.org.uk/siteassets/documents/reports-and-publications/reports-and-briefings/health–wellbeing/age-uk-briefing-state-of-health-and-care-july-2023-abridged-version.pdf

** Among homeowners aged 55 – the age where homeowners can access property wealth via equity release products – key motivations for releasing money from their homes include the desire to pay for care at home (17%), boost their retirement income (16%), or to fund travel plans (15%). All findings come from independent research carried out by Censuswide among 5,000 nationally representative UK adults aged 18+ in June 2021 and November 2023. Combined with analysis of government, regulatory and industry data, Home Advantage represents the Council’s biggest study to date of consumer attitudes and behaviours in relation to their personal finances and property wealth. The 2023 edition of the research is supported by Equity Release Supermarket, as well as Canada Life.

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more

than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

With interest in this important sector continuing to grow, the Equity Release Council is delighted to announce that it will be hosting an exclusive workshop aimed at Advisers new to the sector at its flagship Later Life Lending Summit.  This event, which is due to take place on 13 May at Church House in the heart of Westminster, is sponsored by Adlington Law, one of the leading solicitors in the later life lending space.

The fifth annual summit organised by the Council, themed “Overcoming Barriers: A Vision for Property Wealth and Later Life Lending”, will see up to 350 policymakers, regulators, industry leaders and consumer advocates come together to discuss how the industry can evolve to better support customers (click here). With representatives from more than 10 countries including Canada and the United States as well as from across Europe, this event serves as a global landmark event for the industry.

Attendees will be able to listen to speakers from the Financial Conduct Authority, the Money & Pensions Service, the Financial Ombudsman Service, UK Finance, the Open Property Data Association, Fairer Finance and other well-respected organisations.  More practical ‘advice in action’ sessions will also be included within the day to encourage delegates to consider how they can continue to provide good customer outcomes.

In addition to the main plenary programme, which aims to encourage dialogue amongst key stakeholders by encouraging fresh thinking, the Council will also be hosting a workshop aimed at those new to the sector supported by the LIBF. This tailored event will provide practical insights from industry members on a host of topics including qualifications, marketing, customer engagement and the later life lending advice journey.

Carol Nuttall, Managing Director and Solicitor at Adlington Law, added: “Solicitors have a crucial role to play in the later life lending market – supporting clients as they make choices around property wealth and helping organisations complete the often-complex conveyancing process around this. We are therefore pleased to sponsor the Later Life Lending Summit for the second time and help to provide an opportunity for the industry to discuss the challenge we face and how we can overcome these.” 

Jim Boyd, CEO of the Equity Release Council, said: “The Later Life Lending Summit is the flagship event in our annual calendar and attracts interest from both an international as well as domestic audiences. We are therefore delighted that Adlington Law have agreed to act as lead sponsors – setting the scene for a day of learning, discussion and networking.  There is more interest in the potential for property to support people as they age than ever before and the Summit is a key opportunity to discuss how we can overcome the barriers that are holding our sector back. 

John Somerville, Director of Financial Services at LIBF, added, “For most advisers, securing their qualifications is only just the start of the journey.  The new workstream at the Later Life Lending Summit is designed to provide newly qualified advisers or those considering a qualification with insight into the entire customer journey, as well as hints and tips from those who have been operating in this sector for years.  This type of event is just one of the ways we are demonstrating our commitment to supporting advisers at every stage of their career.”

To find out more about the Summit and book your place, please click here.

ENDS 

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 675,000 homeowners have accessed £49bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

Access Financial Services, a leading mortgage and protection brokerage, has joined the Equity Release Council (the Council).

Access FS mortgage advisers provide advice on a broad range of mainstream and specialist mortgages but over the past year, it has increased its focus on equity release and later life lending, to support this under-served area of the market. This is spearheaded by Adrian Brewer, who was appointed Access FS’ head of later life in November last year.

Access FS has joined the Equity Release Council to help it play a more active role in the development of this market and take part in the ongoing debate around how the sector can best serve its diverse customer base.

Access FS is looking to expand its later life proposition, develop awareness among its many mortgage advisers of the benefits of later life lending, and reach out to help people in later life who may not have had access to the financial options that they need.

Adrian Brewer, head of later life lending at Access FS, said, “Later life lending is such an important part of the lending sphere.  So many older people are left without the support they need because they don’t have access to the right advice. Equity release plays an important part in this advice, but so do all of the later life lending options as one size doesn’t always work for everyone.

“Joining the Equity Release Council means that we can play a more active role in this market, working with the Council and with peers to get the right options to the right people in the right way.”

Jim Boyd, CEO of the Equity Release Council says, “It has never been more important to provide the right financial advice to people of all ages, but particularly those in later life who may not be aware of all their options or be unsure of how to access the value tied up in their home.

“It is therefore vital to have high-quality financial advisers, like Access FS, join the Council to ensure that we can broaden our accessibility to good advice. By becoming a member of the Council, Access FS can also play an active part in building the future direction of this industry, helping to deliver better outcomes for older people.”

– ENDS –

For further media information on Access Financial Services, please contact:

Name: Debbie Staveley, bClear Communications

Telephone: 01275 542511 or 0771 896 8434

Email: [email protected]

About Access Financial Services

Access Financial Services is a mortgage and protection brokerage founded in April 2017 by CEO, Karl Wilkinson. It reached 240 advisers in 2023, just six years after it was founded.

Its mortgage brokers advise on a broad range of mainstream and specialist mortgages including equity release and later life lending as well as commercial lending including bridging, development loans, buy-to-let including specialist and portfolio buy-to-let lending. While its protection advisers offer a whole range of protection and general insurance.

Access FS provides a collaborative environment for advisers to thrive and grow and as a result attracts brokers from a wide range of other institutions. It also runs an academy to bring people into the mortgage and protection industry.

www.accessfs.co.uk

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 688,000 homeowners have accessed almost £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan. 

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

Equity release market ends 2024 on the up!

More than 15,000 customers active in one quarter for the first time in over a year

Total lending rose for third successive quarter

The Equity Release Council’s latest quarterly market report for Q4 2024 shows that more than 15,000 customers were active in the equity release market for the first time in over a year since Q3 2023, either agreeing new plans, taking drawdowns from existing plans or agreeing further advances (extensions) to existing plans.

Total lending also rose for a third successive quarter to £622m, up by 16% from £525m Q4 2023. It meant that total annual lending for 2024 reached £2.3bn, compared with £2.6bn the previous year.

However, while Q4 was the most subdued quarter of 2023 for lending activity, the opposite was true in 2024 in an encouraging sign of modest momentum building with returning consumer confidence.

Average loan sizes continued to increase for both drawdown and lump sum lifetime mortgages, helped by customers’ available equity being lifted by a 3.3% rise in average UK house prices over the last year according to the latest UK House Price Index.

Equity release product availability has also improved over the last year, with the average APR of new products launched in October 2024 more than one percentage point lower than a year earlier (6.47% vs. 7.48%, according to data from Advise Wise).

However, with 56% of new plans being drawdown rather than lump sum, customers are clearly holding out for the potential to make future drawdowns at lower rates if pricing continues to fall.

The Council’s data is unique in that it is made up of aggregated figures collected from all UK equity release providers, encompassing business from advice firms across the market.

Commenting on the data, David Burrowes, chair of the Equity Release Council, said:

“The Q4 2024 data demonstrates encouraging signs of recovery in the equity release market, with three consecutive quarters of growth in lending and total plans for the first time in two years. This is a testament to the resilience of the market and its ability to adapt to shifting economic conditions.

“It’s particularly notable to see a steady increase in returning customers using further advances, with a 27% rise this quarter, reflecting the confidence that homeowners have in leveraging their property wealth responsibly. This is further supported by the gradual rise in UK house prices, which has given many customers the opportunity to access sufficient equity to meet their financial needs.

“As consumer demand stabilises, the industry will continue to support older homeowners needs through product innovation and flexibility.  The average loan sizes of initial drawdowns have grown by 8%, with customers making use of reserve facilities to manage borrowing efficiently over time. This demonstrates the versatility of equity release in addressing diverse financial goals, from home improvements to supplementing retirement income.

“The final figures of 2024 show that the equity release market has turned a corner and there is cause for optimism. Interest rates have started to settle and if the growth seen in 2024 continues to gain momentum, 2025 will see more customers considering the option to access their housing equity using an increasingly diverse range of innovative products.”

ENDS

To read the full report click here.

About the data:

The Council’s market data is compiled from actual whole-of-market returns and is not estimated nor grossed up, making it the UK’s definitive equity release data. All data has been collated by the Council, unless otherwise stated.

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 675,000 homeowners have accessed £49bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]

· 39% of current renters believe they will still be renting in retirement, with only 25% expecting they will be able to get on the property ladder

· Private renters in England now spend an average of 34% of their income on housing, with London renters hit hardest, spending up to 57%*

· In October 2024, average private monthly rents in Great Britain increased by 8.7% annually to £1,307 **

· The state pension would only give retired renters enough money to pay rent for 8.5 months, based on the average private rent in England in October (£1,348)

· 43% of renters are confused about later life mortgages, with the risk that they overlook options to get a foothold on the property ladder later in life

Two in five adults who are currently renting (39%) expect to still be renting when they retire, highlighting a major risk to their later life financial security if millions are left to fund housing costs from their pension savings.

The findings come from a study of 5,000 UK adults’ financial resources, attitudes and experiences by the Equity Release Council (the Council), including the role of property as a foundation of financial security.

The research reveals just a quarter (25%) of current renters believe they’ll be able to buy a home before retirement. It leaves a significant majority of the renter population facing the uncertainty of long-term renting and the prospect of having to adapt their retirement plans as a result.

Without the stability and security of homeownership, many retirees will continue to face significant financial strain, as private rents continue to rise faster than incomes in many areas across the UK. The average monthly rent in October increased to £1,348 in England, £766 in Wales and £976 in Scotland, over a 12-month period. In England, rent inflation was highest in London and lowest in Yorkshire and the Humber.

The risks of renting into retirement include the potential lack of stability it offers compared to homeownership. Renters may face unexpected rent increases or may need to move out if their rental property is sold or repurposed.

The added financial strain and stress of finding new accommodation at short notice can be particularly acute for older age groups who are increasingly likely to be managing health conditions in later life.

Rising rents consume household income

In 2023, private renters with a median household income in England spent 34% of their earnings on a rental home on average. In London, however, average rents have consistently accounted for between 40% and 57% of household incomes since 2015, placing greater pressure on renters in the capital.

In October the average private rent in Great Britain £1,307 per month. If older renters only receive the full state pension, currently £11,502, a retired renter will only have enough money to cover the cost of their rent for 8.5 months of the year. The latest Retirement Living Standards suggest that a single retiree needs an annual income of £14,400 to maintain a ‘minimum’ quality of life, or £15,700 in London. However, these figures assume people are mortgage and rent free.

While those on low incomes with low savings are sometimes eligible for housing benefit payments to cover the cost of rent, the Pensions & Lifetime Savings Association acknowledges that an increasing number of older people will face extra housing costs in later life, including rental costs or mortgage payments.

Later life mortgages offer a step up onto the housing ladder

The Council’s research shows later life mortgages are increasingly seen as more common (39%) and acceptable (39%) by consumers. Almost a third (29%) of current renters believe getting a mortgage in later life can be a positive step that provides more financial freedom and flexibility.

However, one of the main drivers holding people back is confusion around what options are available: two fifths (43%) of private renters are confused about what mortgages are available to people in later life or retirement.

As well as allowing existing homeowners to access the equity in their homes, lifetime mortgages and retirement interest-only (RIO) mortgages can also be used to fund house purchases. Both products give older renters a way to access the property ladder if they have sufficient funds for a large deposit – for example, from an inheritance or the sale of a previous property.

Standard lifetime mortgages allow customers to make ongoing repayments to manage their borrowing, but these are typically not mandated so there are no affordability requirements. Council standards also guarantee customers the right to remain in their home for life, providing financial certainty and stability at a crucial stage of life.

Jim Boyd, CEO of the Equity Release Council, comments:

“With homeownership increasingly out of reach for many people and forcing them to rent into retirement, it’s essential that older renters understand they still have options to climb onto the housing ladder. Innovations in later life mortgages provide a way to work around affordability restrictions for people who may previously have concluded that homeownership was beyond their grasp.

“Products such as RIO mortgages, mandatory payment lifetime mortgages and lifetime mortgages give older customers more options than ever before. It’s crucial to understand you don’t have to be a homeowner before taking out these products on a new home.

“The rising cost of renting risks placing extra pressure on retirees’ pension savings and Government’s housing welfare budget, at a time when both are already significantly stretched. By improving public awareness of the benefits of later life mortgages, more people can access the stability and security of homeownership in retirement.”

ENDS

Notes to Editors *Private rental affordability, England and Wales: 2023 (April 2022-March 2023), published 28 October 2024 **ONS Private Rents and House Prices, published 20 November 2024

All findings come from independent research carried out by Censuswide among 5,000 nationally representative UK adults aged 18+ in June 2021 and November 2023. Combined with analysis of government, regulatory and industry data, Home Advantage represents the Council’s biggest study to date of consumer attitudes and behaviours in relation to their personal finances and property wealth. The 2023 edition of the research is supported by Canada Life and Equity Release Supermarket.

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information: Visit www.equityreleasecouncil.com Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on +44 (0) 207 457 2020

The Equity Release Council has launched its revamped members directory at its Later Life Lending Summit which it is hosting with the Association of Mortgage Intermediaries (AMI) in Sheffield today.  The directory allows consumers to find either an adviser or a legal firm to support them as they consider their later life lending options.

Choosing whether and how to release equity needs to be considered alongside other plans for retirement, inheritance and care so it is vital that customers find the right adviser who can support them or point them to a trusted partner.

The directory, which sees over 21,000 unique visitors annually, has been improved to allow Council members to showcase the full range of services they offer from advice on equity release to wills and trusts, pensions and wealth management.

Better geographic targeting has also been installed and consumers can indicate if their preference is for face-to-face, telephone or digital support.  With the range of customers served becoming increasingly diverse, advisers who are able to provide support in additional languages such as Urdu, Spanish and Arabic have also been highlighted.

In addition to adviser and legal services, the member directory also includes a useful list of lenders’ contact details for customers as well as a list of Council associates who can support businesses who may wish to consider entering the market.

Jim Boyd, CEO of the Equity Release Council, commented:

“The later life lending market is growing and innovating to help the increasing numbers of customers who are looking for support with borrowing in older age.  We are therefore delighted to launch our revamped members directory which allows our members to better showcase their offering to potential customers.

“Finding the right adviser at the right time who can discuss a range of borrowing options and the implications these might have on later life finances is a vital step for customers wishing to access their housing equity. This directory is a stepping-stone to helping people find the type of personalised advice they need.”

-ends-

Notes to Editors:

About the product:

Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 675,000 homeowners have accessed £49bn of property wealth via Council members to support their finances.

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on (0) 207 457 2020

Knights, the UK’s largest regional legal services business, is the latest business to join the Equity Release Council (the Council).

With a team of more than 1,100 professional, Knights is one of the largest collaborative legal and professional services teams in the UK – with a presence in 26 locations nationwide. In addition to providing services to industries as diverse as healthcare, aviation and the energy sector, they also provide independent legal advice for clients who are taking out equity release as part of their personal services practice.

The addition of Knights means the Council now has 769 member firms and 1831 registered individuals. Council members include every active UK lifetime mortgage product provider, as well as financial advisers, solicitors, surveyors, funders and other market professionals, covering every stage of the equity release customer journey.

The addition of Knights to membership follows a number of new members to the Council including financial services review platform Smart Money People and specialist regulatory consultancy Square 4.   The increasing variety of member firms attests to the broad appeal and perceived opportunities for growth within the later life lending market.

The Council’s latest quarterly market report for Q3 2024* showed new plans agreed (5,370) and total lending (£615m) both grew from Q2. This made Q3 the first time since before the mini-Budget of Autumn 2022 that the equity release market has seen two successive quarters of growth.

Jim Boyd, CEO of the Equity Release Council, comments:

“We’re pleased to have Knights join the Council, bringing with them in depth knowledge and experience of legal services. For the right person, equity release can be life changing, allowing homeowners to supplement their pension income, make home adaptations or even fund at home care.

“The requirement for independent legal advice for every customer, enshrined in Council standards, has been a bedrock of the market for over 30 years and is integral to achieving high levels of customer satisfaction and low levels of complaints. We are therefore delighted to add Knights to the list of companies who by joining the Council is committed to helping the industry grow and deliver good outcomes for customers

“In Q3 2024, we saw the first two successive quarters of growth since the Autumn mini-Budget in 2022.  Heading into the new year, the later life lending market can take encouragement from this and we’re hopeful that falling inflation as well as greater political and market certainty will position 2025 as a year of strength and stability.”

Sally Peake, Partner at Knights, comments: “It is not easy to move away from a home where you’ve lived for years and where you have your support circle.  The personal and social impact of moving cannot be underestimated.  Equity Release gives people the option of staying in their home while releasing funds.

“To ensure that customers make good sustainable choices based on their individual and often complex circumstances, it is vital that they receive expert legal advice from well trained and professional firms. We are therefore pleased to be members of the Equity Release Council as this allows us to keep on top of developments and ensure our team can provide the very best support for clients in later life.”

ENDS

Notes to Editors

*The Council’s market data is compiled from actual whole-of-market returns and is not estimated nor grossed up, making it the UK’s definitive equity release data. All data has been collated by the Council, unless otherwise stated.

**The Council’s analysis uses official data from the Bank of England, Office for National Statistics (ONS) and Government departments including Work and Pensions and Housing, Communities and Local Government. The total value of UK housing and property equity are based on the latest market values reported by the UK House Price Index. Regional and age-specific estimates are based on UK House Price Index, English Housing Survey and Wealth and Assets Survey data.

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 675,000 homeowners have accessed £49bn of property wealth via Council members  to support their finances.

About Knights

With 26 offices nationwide, Knights is the largest regional legal services business in the UK. The business is ranked within the top 50 UK law firms by revenue – providing multiple services to business clients alongside premium advisory services to private individuals.

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on (0) 207 457 2020

Smart Money People, the UK’s most comprehensive customer review site for financial products and services, has joined the Equity Release Council (the Council) as its newest member, marking a significant milestone for the company.

With over two million reviews shared to date, Smart Money People’s platform empowers consumers to make smarter financial decisions and provides financial services companies with in-depth insight into what customers think and need.

To foster the continued development of a dynamic, safe, and sophisticated equity release market, the Council focuses its efforts on establishing best practices and standards for equity release products and advice. This commitment aligns with Smart Money People’s mission to achieve increased trust by leveraging data to provide financial organisations with actionable insights to improve and build their business.

With Smart Money People’s arrival, the Council now has 762 member firms and 1848 registered individuals. Its member firms include every active UK lifetime mortgage product provider, as well as financial advisers, solicitors, surveyors, funders and other market professionals, covering every stage of the equity release customer journey.

Equity release sales have been slowly rising during 2024 after a subdued second half of 2023, with borrowers benefitting from the security of fixed or capped interest rates for life and the option to make voluntary penalty-free repayments without the risk of repossession.

The socio-economic factors driving demand for equity release, such as increasing longevity and the pension saving gap, are expected to continue fuelling the need for access to property wealth among older consumers, to support themselves and family members.

Jim Boyd, CEO of the Equity Release Council, said:

“We are pleased to welcome Smart Money People to the Equity Release Council. Our standards are the cornerstone of the UK later life market. The addition of Smart Money People is a ringing endorsement from a well-regarded brand, that puts customers first, that there are genuine opportunities for growth within our market.

“As people live longer, many find themselves asset-rich but cash-poor, with significant wealth tied up in their homes but limited funds to top up their pension income, pay for at home care or make home improvements. For the right person, releasing equity can provide them with the financial flexibility to enjoy a more comfortable retirement.

“We are committed to working with Smart Money People and our broader membership to ensure equity release products remain a trusted option which can contribute to better financial outcomes and experiences in later life.”

Jess Rushton, Head of Business Development at Smart Money People, said:

“The need to borrow into older age and even retirement is increasingly becoming a fact of life for more and more people. We’re committed to helping financial organisations better serve their customers with actionable insights. Smart Money People has extensive experience in working the mortgage sector, including this growing demographic. So we’re delighted to join the Equity Release Council, which will put us at the heart of this vibrant and growing industry.”

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

About Smart Money People

Smart Money People is the UK’s most comprehensive customer review site for financial products and services. More than 2 million reviews have been shared to date, helping people make smarter financial decisions and providing financial services companies with a true picture of what customers think and need. In addition, they create in-depth bespoke reports for financial organisations. As a result, these companies can turn this data into actionable insights to help them better serve their customers and build deeper trust.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on (0) 207 457 2020

Equity release market grows for two successive quarters for first time in two years

To read the full report please click here

The Equity Release Council’s latest quarterly market report for Q3 2024 shows that new plans agreed and total lending rose for a second successive quarter for the first time in two years, as the market’s gradual recovery continues.

Homeowners over the age of 55 withdrew £615m of property wealth from their homes between July and September, a 6% increase from Q2 2024.

With the number of new plans agreed rising by 2% to 5,370 over the same period, Q3 became the first time since before the mini-Budget of Autumn 2022 when the equity release market has seen two successive quarters of growth.

Average loan sizes increased modestly, with new lump sum lifetime mortgage customers taking £111,618 while those taking drawdown lifetime mortgages took £69,952 upfront and reserved another £49,747 for future use.

A 8% quarterly rise in existing customers taking further advances to extend their loans was a sign of customers having sufficient equity remaining in their homes, helped by UK house prices having risen year-on-year for six months in a row, since February 2024, according to the latest UK House Price Index.

The Council’s data is unique in that it is made up of aggregated figures collected from all UK equity release providers, encompassing business from advice firms across the market.

Commenting on the data, David Burrowes, chair of the Equity Release Council, said:

“Returning growth may have been modest to date, but it’s particularly encouraging to see the trend continue during the transition period sandwiched between the arrival of a new Government in early July and its first Budget statement later this month.

“Behind these improving numbers are reports from both advisers and providers alike   that consumer confidence is steadily returning. That may not translate into an uninterrupted upwards trajectory from here, but we know there are many households who have decided that releasing equity is right for them and are now focused on ensuring the timing is also right.

“Housing wealth continues to play a multi-purpose role in people’s financial plans, with mortgage refinancing, gifting and home improvements all common motivations for customers at the moment, alongside topping up retirement income.”

“New customers who need to press ahead have the use of flexible repayment options to manage their borrowing, while people with less pressing needs are watching and waiting to see the future path of interest rates.  To further support homeowners borrowing ambitions, product development teams have been busy adding to the flexible features and criteria available for loan-to-values, interest payments and early repayment charges.

As we head towards the end of the year, we anticipate that we will continue to see steady growth if interest rates remain stable and consumer confidence responds positively to the forthcoming Budget.”

* = the relatively small number further advances taken out (Q3 2024 – 1,115) means that data on this specific metric is more volatile.

About the data:

The Council’s market data is compiled from actual whole-of-market returns and is not estimated nor grossed up, making it the UK’s definitive equity release data. All data has been collated by the Council, unless otherwise stated.

About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 675,000 homeowners have accessed £49bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information: Visit www.equityreleasecouncil.com; call Andy Lane and Libby Wallis at Instinctif Partners on 0207 457 2020; email [email protected]

ENDS

The Equity Release Council (the Council) is delighted to launch the Later Life Lending Summit in collaboration with the Association of Mortgage Intermediaries (AMI) which will be taking place on the 19 November 2024 at Cutlers’ Hall in the heart of Sheffield.

This new venture builds on the highly successful Equity Release Adviser Summit which took place in Manchester in November 2023 and saw over 200 attendees come together to debate the challenges facing the market.  Bookings for the rebranded Later Life Lending Summit which boasts the strapline “uniting for later life advice” are now open [Equity Release Summit (laterlifelendingsummit.com)].

Targeted at advisers, the event aims to draw on the expertise of AMI and the Council to support those who already operate in this sector as well as those who are keen to diversify their businesses by sharing knowledge and providing a forum to debate the challenges they face.  The focus of the day will be ‘educational empowerment’ and ‘building relationships’ with advisers encouraged to actively participate in the varied workstreams which will be structured and offer accredited CPD hours.

With speakers from the Financial Ombudsman Service, the Money & Pensions Service and the Consumer Duty Alliance, the event promises to be a full day with time baked in to allow networking and engagement with service providers and lenders. Adlington Law, which specialises in providing legal support for older clients, are the lead sponsors for this event as they seek to help the wider industry have better conversations about later life.

Jim Boyd, CEO of the Equity Release Council, said: “Later Life Lending is becoming an increasingly prominent topic of discussion as more customers need support with these choices and advice firms debate how they can best serve their needs.  We are therefore delighted to launch the Later Life Lending Summit which aims to encourage broader conversations about these challenges while helping attendees build knowledge and relationships.”

Robert Sinclair, CEO, AMI added: ‘The inaugural Later Life Lending Summit will bring together all aspects of the mortgage industry to discuss how we ensure that in the new Consumer Duty world all firms work to ensure customers get the solution appropriate to them as they age. What it means to be a homeowner is changing and with greater life and product complexity we need to develop solutions to ensure that advisers are best positioned to provide ongoing personalised support to all borrowers. Events such as the summit provide a platform for the industry to have these vital conversations, and we look forward to welcoming representatives from across the industry.’

Carol Nuttall, Managing Director, Adlington Law, commented: ‘I am proud to be the lead sponsor at the Later Life Lending Summit this year as it provides an excellent opportunity to bring the whole industry together.  Specialist legal advice can play a significant role in supporting older borrowers as they navigate the various later life lending options available to them.  We look forward to a great day of learning more about the challenges facing the wider industry and understanding how we can better adapt to serve this community.”

ENDS

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information:

Visit www.equityreleasecouncil.com

Call Andy Lane and Libby Wallis at Instinctif Partners on 0207 457 2020

Email [email protected]

Financial Services Consultancy and Operations Specialist, Square 4, is the latest member of the Equity Release Council. Nationally recognised for helping firms navigate compliance, regulatory challenges, and operational improvements, they design bespoke solutions across a diverse and challenging regulatory agenda.

Square 4’s addition to the ERC’s growing network underscores their commitment to excellence,  acknowledged by the International Compliance Association, when they were awarded Compliance Consultancy Firm of the Year, 2024.

The firm’s tailored advisory, resourcing, and learning approach has made a significant impact across all sectors, including banking, insurance, investments, pensions, and equity release. Square 4 has supported many firms across the financial services spectrum to navigate regulatory and compliance challenges, following the implementation and post-implementation of the Financial Conduct Authority’s (FCA) Consumer Duty.

Recognising that Consumer Duty represents the most significant regulatory change in the past decade, Square 4 have shown active dedication to supporting the industry through their comprehensive Consumer Duty Board Report Guide.  This vital tool is designed to help firms ensure all regulatory expectations, rules, and best practices are effectively considered, evidenced, and approved. This allows firms to not only comply with regulations but show they are committed to improving customer outcomes.

The latest official data published by the Council shows total lending increased by 15% to £577m in Q2 and new customers rose by 12% as customer confidence returns to the market.  The Council’s membership includes all active lifetime mortgage providers across the UK, Ireland and Canada, among more than 750 member firms which also encompass financial advisers, solicitors, surveyors and other professionals.

Jim Boyd, CEO of the Equity Release Council, said:

“As the newest member of the Equity Release Council, Square 4 joins a number of consultancies that are committed to upholding the highest standards within the later life sector. Their decision to join the Council demonstrates the opportunity and continued evolution of the equity release sector that embraces innovation to deliver the best outcomes for customers.

“With a rapidly ageing society and significant levels of property wealth, later life mortgages can provide a path to a more comfortable retirement for homeowners via the untapped potential of housing equity.”

Matthew Drage, Managing Director at Square 4, said:

“Joining the Equity Release Council marks an exciting step for us as an organisation. While our core focus remains on supporting businesses to grow and thrive across the evolving spectrum of conduct, financial crime, and operational risk, we are eager to contribute to the important work of the Council.

“We believe that our expertise in compliance and operations will support firms to deliver great consumer outcomes, and will ultimately add value to the Council’s mission – to help more people responsibly unlock the value of their property. Ensuring the highest standards and best practices are upheld across the industry.”

ENDS

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with five product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

More information:

Visit www.equityreleasecouncil.com

Call Andy Lane and Libby Wallis at Instinctif Partners on 0207 457 2020

Email [email protected]

• UK property currently leveraged at its lowest rate since before the 2007/8 crisis
• Almost four fifths (78%) of the average property is owned in cash with over-55s homeowners holding an average of £321,213 worth of equity in their homes
• Over-55 homeowners collectively own £3.4trillion of property wealth – more than 22x the Government’s annual spending on pensioner benefits in Great Britain

Recovering house prices in the first half of 2024 have boosted the total value of the nation’s property equity to an unprecedented £5.7trillion, according to analysis by the Equity Release Council.

The Council’s research looks at the untapped potential of property wealth to help support the UK’s ageing population at a time when public sector funds are squeezed.  The record £5.7tn figure surpasses the previous high of £5.6tn from mid-2022, when the housing market was buoyed by pent-up demand after the pandemic.

Total UK mortgage debt of £1.6tn compares with an overall property market value of £7.3tn. This gives an average loan-to-value (LTV) of just 22.2%, with the remaining 77.8% of the housing market effectively owned in equity or cash.

The average LTV has dropped from 28.9% ten years ago, and means for every £10,000 of property owned, £7,720 is backed by cash with mortgages covering only a minor share.

Over-55s’ property wealth dwarfs Government’s pensioner welfare budget

Government data shows more than half (55%) of homeowners in England are aged 55+ and 76% of over-55s own their own home. The Council’s analysis indicates the average over-55 owner-occupied household in the UK has £321,213 of equity in their home.

While the most property-rich regions are concentrated in the south of England, every region and constituent country of the UK is home to significant reserves of housing wealth among its older population, which add up to more than £3.4tn in total.

Table 1: Regional property wealth among over-55 homeowner households

Source: Equity Release Council analysis of Government and Bank of England data

Nationally, the findings mean over-55 homeowners in Great Britain own property wealth worth more than 22x the £152bn which the Government will spend on Britain’s pensioner benefits during 2024/25, according to the Office for Budget Responsibility (OBR).

For households, the £321,213 of equity in the average UK over-55 homeowner’s property is worth almost 10x the average pensioner couple’s annual net income of £38,168. The contrast highlights how private property wealth can play both a personal and policy role to help meet later life living costs and welfare needs for the UK’s ageing population.

Having been hit hard by post-pandemic inflation, many older households face losing access to winter fuel payments this year as the new Government brings in means-testing to help manage the public finances.

Lifetime Mortgages which are the most common type of equity release plans allow over-55s to access the equity tied up in their homes via a highly regulated product that can only be sold with advice and includes additional safeguards such as a no-negative equity guarantee and guaranteed tenure for life.

Jim Boyd, CEO of the Equity Release Council, comments:

“While we haven’t seen double digit growth in house prices this year, we have seen the property market start to recover which has pushed the total value of unmortgaged residential property in the UK to over £5.7 trillion.

“Much of this is in the hands of the older generation and our findings make it crystal clear that your prospects of living comfortably in retirement will rest on firmer foundations if you own your own home and include property wealth in your financial plans.

“Spare funds aren’t easy to come by in the current climate, either for households or for Government so it’s vital that we help older homeowners consider the role that the £3.4 trillion worth of property wealth can play in later life finances.

“Whether it is boosting income, managing unsecured debt, paying for care or helping to get family members onto the property ladder, there is a huge amount of potential tied up in bricks and mortar.

“Financial advisers need to ensure that when they are speaking to their clients, the role of property is discussed – even if the right approach is ultimately to look at other options.  We need to encourage informed choices rather than simply relying on what works for previous generations.

“We urge the new Government to look beyond pensions to improve retirement incomes and stimulate the economy. There is a compelling need for Government to set out its vision for property wealth in later life funding: a thriving later life mortgage market can help to achieve both of these outcomes.”

ENDS

Notes to Editors

Methodology

The Council’s analysis uses official data from the Bank of England, Office for National Statistics (ONS) and Government departments including Work and Pensions and Housing, Communities and Local Government.

The total value of UK housing and property equity are based on the latest market values reported by the UK House Price Index. Regional and age-specific estimates are based on UK House Price Index, English Housing Survey and Wealth and Assets Survey data.

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. These include no negative equity guarantee, tenure for life and the right to penalty-free repayments, enabling customers to manage their loans. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Georgia Turton, Isaac Seiger and Libby Wallis on +44 (0) 207 457 2020

• Over 360,000 voluntary penalty-free repayments made during 2022 and 2023, with the total value of annual repayments growing 18% from £102m to £120m
• Number of repayments dipped 9% during 2023, but the average repayment increased by 30% from £538 to £697
• Repaying just £100 a month could help the typical customer reduce their total borrowing costs almost £17,000 over a decade and almost £50,000 over 20 years
• Alternatively, making an ad hoc repayment of £700 ever year would save almost £10,000 over 10 years and nearly £30,000 over 20 years

Equity release customers will save almost £300 million in borrowing costs over the next 20 years having used the freedom to make voluntary penalty-free loan repayments.

New data from the Equity Release Council (the Council) shows that, during 2022 and 2023, homeowners with equity release plans have made more than 360,000 voluntary penalty-free partial repayments to reduce the sizes of their loans.

The total value of repayments also grew by 18% from £102m to £120m from 2022-23.

Customers capitalising on fifth Council Product Standard

Lifetime mortgages allow older homeowners to access money from the value of their homes. While the loan plus interest is typically repaid when the customer dies or goes into long-term care – helping to maximise their available money in later life – they can make voluntary penalty-free partial repayments to reduce their total borrowing costs.

The freedom to make such repayments, typically up to 8-15% of the loan each year, has been a compulsory feature of all products which meet Council standards since 28 March 2022.

By reducing the amount owed, it helps to reduce the compounding of interest over time. Crucially, customers do not lose the right to make voluntary part-repayments if they choose not to do so and have no risk of their home being repossessed for missing repayments.

Because repayments are voluntary, there is also no requirement for customers to pass affordability tests to qualify for a loan, unlike with standard interest-only or capital-and-interest repayment mortgages. 

Table 1: Voluntary penalty-free partial repayments by equity release customer

The Council’s data shows that, while the total number of repayments made dipped 9% from 2022 to 2023, the average repayment size increased by 30% from £538 to £697.

This shift suggests that while the frequency of payments was hampered by the current cost of living challenges, customers were still keen to reduce their borrowing when possible.  In addition, the increasing total value of repayments made during 2023, and the larger average repayment size, shows that those customers who could afford to do so made more significant inroads to reducing their loan sizes and cutting borrowing costs.

Jim Boyd, CEO of the Equity Release Council, comments:

“These figures highlight how the flexible design of modern equity release products give customers more levers to pull to adapt to changing circumstances. The blend of innovative product design and clear consumer standards has proved transformative by putting customers in control.

“While equity release helps people maximise their money in later life, with no ongoing repayments required, people are making significant savings by chipping away at their loans when they can afford to.

“Small repayment habits add up to significant savings over time. Voluntary repayments make it possible for customers to access property wealth in the here-and-now while increasing the chances of preserving something to leave behind as a traditional inheritance.”

Modest monthly repayments add up to big cuts to borrowing costs

The Council’s analysis shows how a ‘typical’ equity release customer, taking a £60,000 initial withdrawal of property wealth via a drawdown lifetime mortgage, could significantly reduce their long-term borrowing costs by making regular or ad hoc repayments when they can afford to.

For example, making regular £100 monthly repayments would save them almost £17,000 over a decade in total borrowing costs, and almost £50,000 over 20 years. Those savings increase to nearly £34,000 and £99,000 with a regular £200 monthly repayment.

Alternatively, making an ad hoc repayment of £700 ever year would save almost £10,000 over 10 years and nearly £30,000 over 20 years. Doubling that ad hoc annual repayment to £1,400 would boost the savings to over £20,000 and almost £60,000.

Table 2: Potential savings by making voluntary penalty-free partial repayments

Note: examples are based on an interest rate of 6.57%, the average paid by new drawdown lifetime mortgage customers in H2 2023

The right to make penalty free repayments, subject to lending criteria, is one of five product standards which help to ensure equity release customers are fully informed and properly protected when releasing money from their homes.

The five standards are:

• For lifetime mortgages the rate must be fixed for each release or, if variable, the rate must be capped for the life of the loan.
• You must have the right to remain in your property for life or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.
• You have the right to move to another property subject to the new property being acceptable to your product provider as continuing security for your loan.
• The product must have a “no negative equity guarantee”. This means that when your property is sold, and agents’ and solicitors’ fees have been paid, even if the amount left is not enough to repay the outstanding loan to your provider, neither you nor your estate will be liable to pay any more.
• All customers taking out new plans must have the right to make penalty free payments, subject to lending criteria.

ENDS

Notes to Editors

For media enquiries, please contact:

Instinctif Partners at [email protected]

Phone Georgia Turton, Isaac Seiger and Libby Wallis on +44 (0) 207 457 2020

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

• Download the Vulnerability Vigilance report here. 
• Download The Legal Guide to Equity Release here. 

The Equity Release Council has launched a Legal Guide to Equity Release as well as a new report, Vulnerability Vigilance, exploring the most common customer vulnerabilities which legal advisers can encounter. 

This supports the Council’s commitment to maintaining and improving standards with the combined insights designed to educate the later life lending sector and the wider legal profession as to the vital role legal firms play in supporting customers in this market.

The study took an in-depth look at a sample of more than 300 cases from last year where the customer had been identified as potentially vulnerable.  

Among these customers, the research highlighted health (44%) and capacity (23%) issues as the most common types of vulnerability identified as part of the independent legal advice process.  In almost a quarter (24%) of cases where vulnerability was highlighted, the legal adviser identified more than one vulnerability.

All customers who take out equity release must receive independent legal advice to ensure they fully understand the risks and implications of their choices, the product details and are free from duress.  The legal adviser is responsible for advocating for their client and should a vulnerability be identified, they will help them to obtain the specialist support they need to decide whether equity release is right for their individual circumstances.

Over three quarters of cases (78%) where the client was flagged as potentially vulnerable were able to proceed with additional support. Of those where it was not possible or appropriate to proceed, capacity (25%), health (25%), duress (16%) and undue influence (10%) were the primary vulnerabilities identified.

A total of 670,000 customers have accessed £48bn of property wealth via Council members, with the benefit independent legal advice, since it was first mandated in 1991. 

Legal Guide Launched to Educate Additional Firms

To encourage more firms to consider how they can better support equity release customers, the Council launched its Legal Guide to Equity Release at its Annual Summit in Westminster today. This comprehensive document is aimed at educating legal professionals about the unique role they can play in this market.

David Burrowes, Chair of the Equity Release Council, said:

“Independent legal advice is an essential part of the process of releasing equity, and it is vital we have the knowledge and skills in place across the legal sector to reflect and support the modern market.  

“Our new guide will help to ensure a common understanding of the role of legal advice and its contribution to ensuring good consumer outcomes.  It will also challenge more firms to consider whether they can offer this service to customers and what lessons they might learn from those who already successfully operate in this space.

“Meanwhile, our members’ insights, gleaned from supporting vulnerable consumers show the benefit of involving specialist legal advice in important financial decisions, particularly in later life when customers can be more prone to vulnerability. 

“Equity release can be a transformative financial product which, when used appropriately, can provide an important lifeline for pensioners, improve living standards and enhance the lives of their families.” 

Both the Vulnerability Vigilance report and The Legal Guide to Equity Release were produced with support from the Council’s legal forum. 

Carol Nuttal, Managing Director at Adlington Law, said:

“Moving a client from being interested in potentially releasing equity to eventually taking the product out is a team effort and too often the vitally important role that the legal profession plays goes unacknowledged.  We are therefore delighted to see the launch of this guide

which is designed to build understanding amongst the wider sector and encourage more firms to offer this service to their clients.

“With the typical equity release customer being almost 70 years old, there is no doubt that they are more likely to be vulnerable than some other age groups.  Therefore, it is vitally important that they have someone whose sole purpose is to advocate on their behalf.  Whether they are dealing with health or capacity issues or there are concerns about duress, their independent legal adviser works to ensure they understand the choices they are making and they are in their best interests.

“This is a service that is unique to equity release and highlights the commitment of the industry to ensuring that there are enhanced safeguards in this sector.”

Claire Barker, Chief Executive Officer at Equilaw, said:

“The launch of the Legal Guide to Equity Release is a significant step forward for the industry and our hope is that it inspires best practice from lawyers who want to work in the equity release sector. 

“Lawyers need to be aware that far from being a simple remortgage, equity release transactions require them to advocate on behalf of their client and ensure customers fully understand the implications of their choices as well as the product details. 

“There are many other factors in play, all of which are signposted within the guide which has been designed to be an ongoing point of reference.  This will be particularly useful for those who are new to the market and may be unused to the specific requirements involved with later life lending products.” 

ENDS

Notes to Editors

Email Instinctif Partners at [email protected]

Phone Georgia Turton, Isaac Seiger and Libby Wallis on +44 (0) 207 457 2020

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 670,000 homeowners have accessed £48bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

To visit the Home Advantage hub and read more reports from the study click here

• More than three in five (61%) UK homeowners are interested in releasing money from their property in later life to meet various financial needs, up from 57% in 2021
• Homeowners increasingly believe it is becoming more common (39%) and acceptable (39%) to have a mortgage in later life, both up from 34% in 2021
• The biggest drivers for doing so are to meet care-related costs (17%) and boosting pension income (16%)

More than three in five (61%) UK homeowners – equivalent to 18.7 million people* – are interested in releasing money from their home in later life to meet a range of financial needs, according to new findings from the Equity Release Council (the Council).

This figure has risen since 2021, when 57% of people said the same. The trend is revealed by the Council’s Home Advantage study of 5,000 UK adults’ financial attitudes and experiences, supported by Equity Release Supermarket.

Growing Acceptance of Borrowing into Older Age:

The research shows the increasingly important role of property to help fund a comfortable retirement. With more ‘ultra-long mortgages’ running beyond people’s state pension age, only 26% of homeowners rule out the idea of accessing money from their homes when they are older.

Almost two in five believe it is becoming more common (39%) and acceptable (39%) to have a mortgage in later life. Both measures have increased from 34% since 2021.

Almost half (46%) of homeowners aged 55 and over now see property wealth as a means of satisfying later life needs. Even stronger appetite exists among younger homeowners. Three in four (75%) below the age of 55 are open to leaning on their property wealth in later life.

The biggest shift in attitudes since 2021 has been among the 35-44 group, with 78% interested in accessing money from the value of their home in future, up from 67%.

Graph 1: Percentage of homeowners interested in unlocking property wealth in later life

Meeting Care and Retirement Costs a Key Focus for Borrowers:

Among homeowners aged 55 – the age where homeowners can access property wealth via equity release products – key motivations for releasing money from their homes include the desire to pay for care at home (17%), boost their retirement income (16%), or to fund travel plans (15%).

Supporting the financial wellbeing of younger family members is also an important priority. Nearly one in seven (14%) are interested in ‘giving while living’ by gifting money from their property wealth to family for a deposit towards their first home, with 13% looking to gift money to younger family to support other financial goals.

Graph 2: Most popular future financial priorities when accessing property wealth

With annual residential care costs now approaching £46,000 in major UK cities and many older people reluctant to go into a care home, separate research from Care UK** demonstrates that equity release is already one of the most popular methods to pay for at home care.

Jim Boyd, CEO of the Equity Release Council, comments:

“In an ideal world, most people would retire with a mortgage-free home and a substantial pension but that is not the reality of modern Britain.  People are choosing products such as ultra long mortgages out of necessity as the lower repayments allow them to purchase a home, save into their pensions and finance their day-to-day living expenses.

“The rise of products such as ultra long mortgages highlight the changing relationship people have with property wealth as it is increasingly being seen as an asset rather than simply bricks and mortar.  Almost half of over-55s see property wealth as a means to meeting later life needs and the younger generation is even more wedded to this approach.

“We need to support people look at all their options when it comes to funding retirement whether it is pensions, property or investments.  One size does not fit all. Encouraging people to have realistic conversations will provide more people with the type of retirement they want and need.”

Mark Gregory, Founder and CEO of Equity Release Supermarket, comments:

“Many factors dictate why people opt for equity release and changes in consumer behaviour tend to be reflective of the current market competitiveness. At one time people thought their mortgages would run just for the mandated term, but changing attitudes and acceptance towards borrowing into retirement has created ongoing demand for these types of products.

“This coupled with a decline in pension provisions, savings and longer life expectancy has given rise to a need to borrow in later life as people look to redistribute their wealth to the younger generation, pay for care, replace their mortgage, or fund lifestyle goals.

“The equity release sector has significantly evolved in line with these consumer demands and now encompasses far greater opportunities around later life living and finance. The beauty of the market today is that there are tools and platforms that exist, which help consumers to navigate these choices, enable them to review all options, view real-time rates and gain whole of market advice.”

Lifetime mortgages, the most common form of equity release, are typically loans for people over 55 that are usually repaid when the customer dies or goes into long-term care.

The Equity Release Council is the representative trade body for the UK equity release sector. It sets industry standards and safeguards, such as a no negative equity guarantee and the right to penalty-free repayments, enabling customers to manage their loans.

ENDS

Notes to Editors

All findings come from independent research carried out by Censuswide among 5,000 nationally representative UK adults aged 18+ in June 2021 and November 2023. Combined with analysis of government, regulatory and industry data, Home Advantage represents the Council’s biggest study to date of consumer attitudes and behaviours in relation to their personal finances and property wealth. The 2023 edition of the research is supported by Equity Release Supermarket, as well as Canada Life.

*Population data published by the ONS reveals that there are 55,190,347 adults aged 16+ in the UK. Our survey found that 55.63% are homeowners (30,702,390) and 61% of homeowners are interested in unlocking property wealth which equates to 18,728,458 (18.7m).  https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland

**https://ukcareguide.co.uk/equity-release-advice-index/

For media enquiries, please contact:

Instinctif Partners at [email protected]

Phone Georgia Turton, Isaac Seiger and Libby Wallis on +44 (0) 207 457 2020

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

About Equity Release Supermarket:

Equity Release Supermarket was founded by Mark Gregory in 2008, and has grown to become the UK’s No.1 independent equity release advisory service, having helped thousands of people to enjoy financial freedom through equity release. They’ve built their reputation on the premise of outstanding financial advice.

Mark was an equity release adviser and so he understands both the customer journey and how equity release can help change people’s lives. His vision was one where he could offer his customers the very best impartial financial advice, access plans from the whole marketplace, recommend the best equity release deals, and make the most of technology to help his customers.

Equity Release Supermarket have a 100% Trusted Merchant Status from independent review service Feefo and are regulated directly by the Financial Conduct Authority (FCA) No. 584063. They are also members of the Equity Release Council, who set the standards for the industry.

For more information, please visit: https://www.equityreleasesupermarket.com

For more information about smartER, please visit:  https://www.equityreleasesupermarket.com/smarter-equity-release-search

The Equity Release Council (the Council) today announces that Donna Francis (Chief Operating Officer) has stepped down.  Donna – who is also a board member at the Council – has made the decision to pursue new opportunities building on her more than 20 years’ experience across many highly respected professional membership bodies in the financial services sector.

Commenting, David Burrowes, Chair of the Equity Release Council said:

“I would like to extend the gratitude and heartfelt thanks of everyone at the Council and our members to Donna who, after ten years of exemplary service, has made the difficult decision to leave to pursue other opportunities.

“Donna has made an invaluable contribution to the Council both as COO and as a Board member and has the respect of colleagues, members and key stakeholders across this important sector.

“Donna’s input and experience have been key to the development of the Council in its formative years having joined soon after its launch and has continued to be a guiding light and central in the major decisions which have been so important in the development of the Council as a trusted and influential trade body and standards setter.

“During her time and stewardship, the Council has grown significantly with over 750 corporate members and 1,800 individual members, and whose logo is now synonymous with good customer outcomes and high standards.

“Donna will certainly be much missed and whilst we are sad to see her go, we all wish her well as she looks forward to new opportunities ahead.”

The Equity Release Council is reminding advisers of their responsibilities under the next phase of the FCA’s consumer duty, which comes into force on July 31st 2024.

The ‘closed book’ phase of the duty means consumers on products that are no longer sold or renewed must come under the same scrutiny as those on current products.

It is considered even tougher to implement than phase one, because closed books of mortgages can be decades old and are often sold on without the full client history.

While equity release is subject to the duty, it could provide a lifeline to customers of other products – such as mortgage prisoners and interest-only customers without repayment vehicles – who could be identified under the duty.

The Council recently published guidance for its members, which includes the entire equity release value chain, in collaboration with a member consultancy firm.

It was the latest in a long list of resources aimed at supporting members to comply with the duty, including extensive guidance on fair value, webinars and technical bulletins.

Kelly Melville-Kelly, the Council’s director of risk, policy and compliance, said while providers shoulder the most responsibility, advisers have a key role to play too.

She said: “The consumer duty is about fairness. Firms must act in the best interests of their customers and take reasonable care to avoid causing harm, at all times.”

“Embracing this proactive approach during the open book phase has meant that organisations have had to update and change their processes, but our members have risen to the challenge.

“Applying the same scrutiny to closed book customers is going to be harder still.

“Some firms will have inherited closed books which present an even greater challenge as many of the originator firms are no longer in market.

“For providers, termed manufacturers in the duty, this could mean unpicking legacy systems that have long since been archived.

“For advisers, or distributors, it’s about working with the providers as well as checking client records to see if any are on closed book products and ensuring they are kept informed of their options.

“They also need to ensure that if a client’s circumstances have changed, there is an assessment of the ongoing suitability of the product, with particular attention paid to vulnerable customers.

“Equity release can also provide support for other closed book customers who may be languishing on interest-only products without a repayment vehicle, or who find that they are mortgage prisoners after their original provider left the market.

“Even if the customer sits within a closed book, firms must check whether the product remains suitable and that the customer still understands the risks and benefits. If the answer is no, then firms must have a plan to support that customer.”

“The end of July is also the deadline for firms to submit their annual review which must include an assessment of whether the firm is delivering good outcomes for its customers.”

The Equity Release Council (the Council) has announced Adlington Law as the lead sponsor for the Equity Release Summit taking place on 23 May at Church House in the heart of Westminster.  This is the first time that a legal services provider has been the lead sponsor of the event which highlights the vital role that the legal profession plays in supporting the industry.

Designed to meet the needs of the Council’s diverse membership as well as support engagement with wider industry stakeholders, the programme includes over 11 different sessions across two different workstreams – ‘Leadership and Strategy’ and ‘Equity release in Action’. Three plenary sessions tackling the challenges facing the industry at the moment now will also take place on the day: 

• Transforming perspectives: navigating trust and reputation in the equity release sector facilitated by Chris Pond, Chair of the Financial Inclusion Commission.
• Navigating Gender Disparities in Retirement: Insights for inclusive advice in later life facilitated by Kelly Melville-Kelly Director of Risk, Policy and Compliance, Equity Release Council.
• Addressing evolving needs through innovation facilitated by Tom McPhail, Director of Public Affairs, the lang cat.

As part of the Council’s commitment to raising standards, Carol Nuttall (Managing Director and Solicitor at Adlington Law) will also host a session which looks at how we can continue to boost the standard of legal advice equity release clients receive.  Adlington Law are an award-winning private client and equity release specialist which focus on providing supportive tailored advice to clients.

Jim Boyd, CEO of the Equity Release Council, said: “The Equity Release Summit is the UK’s flagship event for the equity release industry, and we are delighted to announce that Adlington Law is our lead sponsor. While the role of advisers is well recognised, the hard work that the legal profession puts into each, and every case can too often be overlooked. Independent legal advice provides another protection for vulnerable consumers. We are therefore pleased to use the Summit to build a better understanding of the wider work of our industry and the legal community.

“We look forward to welcoming members of the later life lending industry to this event which will provide an invaluable opportunity to network, learn from experts and build a better understanding of how we can work together to deliver good customer outcomes.”

Carol Nuttall, Managing Director and Solicitor at Adlington Law, added: “We are pleased to be the first legal firm to act as lead sponsor for the Equity Release Summit.  This event is a key date in the later life lending calendar as it brings together organisations, firms and stakeholders to consider how we can encourage the safe growth of the sector.

“Much still needs to be done before people routinely consider housing equity as part of retirement planning but it is events such as the Summit which will lead the way.  We are therefore pleased to be able to support this important initiative and hope to use the opportunity to showcase the vital work that the legal profession undertakes on behalf of equity release customers.”

To find out more about the Summit and book your place, please click here.

ENDS

Notes to Editors

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information or to request a copy of our standards please:

• Visit www.equityreleasecouncil.com
• Email Instinctif Partners at [email protected]
• Phone Libby Wallis, Andy Lane and Mike Norris on +44 (0) 207 457 2020

Developed with ratings agency Fairer Finance, ultimately it aims to give customers the best chance of understanding products and services and support them to make good financial decisions.

According to the National Literacy Trust, one in six British adults has a reading age of 11 or less and would fall short of the standard required to achieve a grade C English GCSE.

Meanwhile, Financial Conduct Authority rules have long since required firms to ensure their customer communications are “clear, fair and not misleading”. This obligation has been reinforced by the Consumer Duty, which obliges firms to prove their customers can understand their communications.

In addition, the Financial Ombudsman Service considers the readability of documents when deciding if firms have acted fairly or reasonably in the event of consumer disputes. And the Consumer Rights Act 2015 also emphasises the importance of using “plain and intelligible language.”

The new handbook is available to the Council’s membership of more than 750 firms and 1,900 registered individuals, including product providers, regulated financial advisers, solicitors, surveyors and other professionals involved in both consumer-facing and back-office roles.

While it is aimed at advisers, it will benefit many industry professionals. For example, the Solicitors Regulation Authority requires all solicitors to “use plain English and avoid complex language and technical terms.”

Members of the Council, the representative trade body for the equity release sector, can use the handbook as a practical toolkit when developing new communications or updating existing ones.

It covers the importance of using simple, jargon-free language as well as ensuring that documents are structured and designed in a way that is user friendly.

Jim Boyd, CEO of the Equity Release Council, said: “This guide builds on a cast iron commitment, that was enshrined in the very first equity release industry standards more than 30 years ago, to provide customers with fair, simple and complete presentations of information.

“With more features and flexibilities available on the market than ever before, it is vital that customers understand their options, so they are empowered to make informed financial decisions. This will deliver a lasting benefit to both customers and their families.

“Working with Fairer Finance to produce this guide will support our members to bring modern equity release products to life for customers in ways that are accessible, understandable and easy to digest.”

James Daley, founder and MD of Fairer Finance, said: “It’s fantastic to see the Equity Release Council supporting its members to communicate clearly with their customers.

“Equity release is a complex product and it’s crucial that customers can understand exactly what they’re signing up to.

“Our guide provides practical advice which will make it easier for lenders and brokers to write, design and structure their documents in a way that is accessible for as many customers as possible.”

To view the document, click here.

ENDS

Notes to editors

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

About Fairer Finance

Fairer Finance is a consumer group, ratings agency and consultancy with a mission to create a fairer financial services market for consumers, as well as the businesses that serve them.

Set up in 2014 by James Daley, it has worked with dozens of financial services firms to help them create clearer communications.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis, Georgia Turton and Isaac Sieger on +44 (0) 207 457 2020

Nokkel, the house wealth and fintech platform, has joined the Equity Release Council (the Council), the consumer-centric UK trade body which exists to promote high standards of conduct and practice in the equity release sector by putting consumer safeguards at its heart.

Nokkel is an innovative platform that uses technology to provide advisers and their clients with a clear picture of an individual’s investment portfolio – including real time residential property information – to improve financial well-being.

By joining the Council, Nokkel is seeking to leverage this advanced technology to broaden the understanding of housing equity’s role in retirement planning. As part of this ambition, the firm is also keen to work with the wider later life lending industry to make it easier and more effective to make use of property wealth in retirement.

“We are proud to join the Equity Release Council, uniting with top-tier industry professionals to foster innovation in later-life lending and wealth tech spaces,” said Roland Whyte, Founder and CEO of Nokkel. “This collaboration is a cornerstone of our mission, enabling us to harness technology and data to democratise property wealth, offering a vital resource for those in or approaching retirement.”

Jim Boyd, CEO of the Equity Release Council, added: “Up to half of a retirees’ total wealth is made of residential property so it is vitally important that as an industry, we consider how we can allow for better comparison across the various asset classes.

“We are therefore delighted to welcome Nokkel as the newest member of the Equity Release Council and fully support their ambition to work with the wider industry to make it easier to consider housing equity as part of retirement planning.”

• This press release was produced and issued by Nokkel. The views of contributors are not necessarily shared with the Council. 

Royal London, the UK’s largest life, pensions and investment mutual, has become the latest major later life brand to join the Equity Release Council.

The financial services group has over 8.6 million policies in place and over £153 billion assets under management, placing it among the world’s 25 biggest mutuals. Royal London’s proposition spans protection, long-term savings and asset management products and services to help safeguard and improve living standards for its customers and their families.

Royal London’s confirmation as a Council member follows its acquisition of Responsible Group which it completed at the end of January, expanding its existing stake in the business.

The Responsible Life and Responsible Lending brands give Royal London access to specialist later life product development and financial advice capabilities in a market which it sees as having significant long-term growth prospects.

The Council counts all active lifetime mortgage providers across the UK, Ireland and Canada among its membership. The organisation brings together more than 750 firms in total spanning the product manufacturing, financial advice, legal, surveying and consulting communities.

All members adhere to Council standards for consumer protection, which are recognised as a mark of good practice by influential bodies such as the Financial Ombudsman Service and consumer champions including MoneySavingExpert.

Jim Boyd, CEO of the Equity Release Council, said:

“Equity release and the wider later life lending sector has a huge role to play for many homeowners in the UK. We are therefore delighted Royal London has chosen to join the Council as their presence among our provider and adviser members endorses the belief that, if firms want to offer comprehensive services to older consumers and their families, these products are an essential piece of the jigsaw.

“With over 750 individual member firms, the Council works hard to be a force for good in the market, building strong standards, supporting innovation, and encouraging firms to really consider how they put good customer outcomes at the heart of their organisations.

“There is always more to be done but today it is great to be able to welcome another organisation who recognises the importance of this work and the potential of this vibrant market.”

Colin Mitchell, customer life stage director at Royal London, said:

“Following the acquisition of one of the UK’s leaders in later life lending, Responsible Life and Lending, Royal London has joined the Equity Release Council as part of our commitment to this growing market.

“Later life lending is an important part of retirement planning for over 55s and we’re committed to supporting advisers and customers in providing solutions for funding later life.”

ENDS

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

About Royal London

Royal London is the largest mutual life, pensions, and investment company in the UK, and in the top 25 mutuals globally, with assets under management of £153 billion, 8.6 million policies in force and over 4,100 employees. Figures quoted are as at 30 June 2023.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on +44 (0) 207 457 2020

The Equity Release Council (the Council) today announces updates to its Standards as well as a wider review of these vital consumer safeguards.  This is taking place as part of its commitment to supporting good customer outcomes as well as innovation within the Later Life Lending sector. 

All Council members are currently required to adhere to a set of standards and principles which safeguard customers by ensuring they are fully informed, and products and services meet best practice.  Following consultation with stakeholders and members, the Council has made some initial updates to the Standards with a wider refresh planned for later in 2024.

The first tranche of updates will come into effect from 01 March 2024 and include two notable changes which underpin increased product flexibility and consumer choice in later life.  Firstly, new standards for Mandatory Payment Lifetime Mortgages have been developed to offer customers enhanced protections and additional peace of mind.

In addition, the Standards now include the requirement for advisers to cover income and expenditure as part of the advice process. This important metric is already included in many adviser discussions alongside topics such as alternatives to equity release but to ensure that it is consistently delivered, Council Standards now mandate this.

Consumer-focused equity release standards were first introduced by the Council in 1991 and have constantly evolved since then as they are fundamental to building and maintaining trust in a market which has supported over 650,000 customers over this period.

Michelle Highman, Chair of the Equity Release Councils Standards Committee, said: “The Council’s Standards have been vital to the development of a vibrant market, but it is important that we regularly review them and consider how we best serve customers as well as support innovation within this sector. 

“The Council is therefore undertaking a thorough review in 2024 with input from members, stakeholders, and other interested parties.  The evolution of our Standards is key to helping the market continue to grow and ensure that the diverse customers who choose to access their housing equity can do so with confidence.”

Kelly Melville-Kelly, Director of Risk, Policy and Compliance at the Equity Release Council added: “As a market, we have seen significant innovation and change over the last few years, and it is vitally important that we ensure our Standards continue to evolve.

“The updates that we have announced today are just a start and we will shortly be launching a wider review and seeking input from members as well as wider industry stakeholders.  This will be a wide-ranging refresh which will look at not only the standards themselves but how they are communicated to customers to ensure that they provide the best protection possible.”

ENDS

Notes to Editors

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information or to request a copy of our Standards please:

• Visit www.equityreleasecouncil.com
• Email Instinctif Partners at [email protected]
• Phone Libby Wallis, Andy Lane and Mike Norris on +44 (0) 207 457 2020

The Equity Release Council (the Council) has today announced the appointment of Lee Blackwell into the newly created role of Director of Communications and Marketing.

Her role will support the industry in explaining the significant function that property wealth can play to address major consumer and societal issues as the UK’s ageing population grows.

In addition, it will serve consumers by raising awareness of the work of the Council and its members in setting authoritative standards for products and advice with consumer protections at their heart.

Lee brings over 20 years of sector experience to the Council, spanning consultancy, in-house and trade association roles across retirement, pensions and later life lending.

She was most recently Group Director of Public Relations, Public Affairs and Internal Communications at Key Group, and previously held senior communications roles at Partnership, Just and the Pensions and Lifetime Savings Association (PLSA).

Her responsibilities will encompass communications, marketing and business development strategy at a time when the potential consumer need for later life mortgages and property wealth are becoming increasingly important.

With the market adapting to the current higher interest rate environment, lifetime mortgages and other forms of later life borrowing have continued to attract growing interest from firms in adjacent areas of financial services, including pensions and wealth management.

Jim Boyd, CEO of the Equity Release Council, comments:

“Lee brings a wealth of experience to the Council and an expert understanding of consumer, adviser, provider and trade body perspectives that will help support the safe growth of our sector as it evolves to meet emerging consumer needs.

“It has never been more important to raise awareness of the possibilities of property wealth and the Council’s role as a standards setter underpinning safe market growth, product innovation and supporting good consumer outcomes.”

Lee Blackwell comments:

“I’ve seen first-hand how the Council is dedicated to putting consumer interests at the very heart of its work, and the unique role it plays in bringing together firms across the market to improve awareness and engagement with modern equity release products.

“With property wealth holding huge potential to meet some of the challenges facing the UK’s ageing population, I am delighted to join a team whose expertise, passion and commitment is visible in everything they do. I’m looking forward to collaborating with members to help promote the benefits of specialist advice and product innovation, underpinned by Council standards.”

ENDS

About the Equity Release Council

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis, Andy Lane and Mike Norris on +44 (0) 207 457 2020

One of the UK’s largest independent financial services consultancies, Hymans Robertson LLP, has joined the Equity Release Council as a new member.

Hymans Robertson is an independent partnership, helping to build better financial futures for millions of people across the UK. They provide services to organisations and individuals across pensions, investments and insurance.

Its decision to join the Council reflects the long-term prospects for growth and innovation in the market, which was among the fastest-growing in retail financial services in the decade leading up to the Covid-19 pandemic.

While rising interest rates reduced activity last year, lifetime mortgages and related later life mortgage products are widely expected to play a key role in many older people’s retirement plans. The UK’s older population is predicted to double in size between 2020 and 2045.

The Council’s analysis shows there is approximately £1.63 trillion of equity locked up in property, making this asset class second only to private pensions as a source of wealth in the UK. The opportunity to release funds to help more people enjoy a comfortable retirement is likely to drive more interest from institutional investors as well as from individual consumers.

Recent FCA analysis shows over 250,000 interest-only or part-interest-only mortgages will reach maturity in three peaks (2027, 2031 and 2032) over the next ten years. Repayment deadlines are likely to prompt some customers to consider switching to lifetime or later life mortgages as a way to remain living in their homes.

The Council’s membership includes all active lifetime mortgage providers across the UK, Ireland and Canada, among more than 750 member firms which also include financial advisers, solicitors, surveyors and other professionals.

Jim Boyd, CEO of the Equity Release Council, said:

“The desire of consultancies like Hymans Robertson to join our established provider and adviser members shows how important equity release and later life mortgages will be to the future of UK financial services, underpinned by the certainty and security provided by Council standards.

“With an ageing population putting pressure on many public services, the private sector and institutional investors have a big role to play in providing innovative ways for people to tap into their property wealth and, in doing so, answer some of the biggest public policy challenges of our times.”

Nicola Kenyon, Head of Insurance Investment and ALM of Hymans Robertson, said:

“There is a huge opportunity and demand for equity release mortgages, including hybrid product innovation to support a comfortable retirement for many customers in the UK. We are excited to provide our services to institutional investors, such as insurers and pension schemes, to support their regulatory oversight and to develop new innovative products. We look forward to working with the ERC and their member community in finding ways to help individuals to unlock their property wealth in a safe and appropriate way 

– Ends- 

About the Equity Release Council

The Equity Release Council is the representative trade body for the UK equity release sector with more than 750 member firms and 1,900 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

About Hymans Robertson LLP

Hymans Robertson LLP is one of the UK’s leading independent financial services and pensions consultancies. We work alongside employers, trustees and financial services institutions, offering independent pensions, investments, benefits and risk consulting services, as well as data and technology solutions.  The firm operates as an independent partnership employing over 1000 people in four UK offices in London, Glasgow, Edinburgh and Birmingham. We pride ourselves on our trusted relationships and our innovative, client focussed approach. Our clients include FTSE 100, FTSE 250 and privately owned firms as well as employers, pension providers, insurance firms, banks and Independent Financial Advisers.  These include some of the UK’s leading names and largest pension schemes. We are also recognised leaders in the field of public sector pensions. The firm was established in 1921.

For more information:

Visit www.equityreleasecouncil.com

Email Instinctif Partners at [email protected]

Phone Libby Wallis and Andy Lane on +44 (0) 207 457 2020

The Equity Release Council has confirmed two board positions for 2024 to secure its growing influence and ensure consumer interests are represented at the heart of its governance. 

David Burrowes has been reappointed to serve as chair for a third and final term, while Michelle Highman will join the board¹ as an independent non-executive director, in addition to her role as chair of the Council’s standards committee. 

David has chaired the Council’s board since 2017 as the organisation has continued to grow and diversify its membership to reach over 750 firms and 1,800 individuals and become independently governed. 

Michelle has led the Council’s standards committee since April 2023, overseeing the rules that members commit to, which go above and beyond their regulatory duties. She is also CEO of the Money Charity which promotes financial capability and wellbeing across the UK. 

After a challenging year for the UK economy, recent figures from moneyfactscompare.co.uk show equity release product choice and pricing are improving as firms adjust to the higher interest-rate environment. More than 50,000 new and existing customers unlocked £2.1bn of property wealth in the first nine months of 2023. 

Meanwhile, the Council has been actively working with policymakers to identify how later-life mortgages can help to tackle domestic public policy challenges. During this time the independent Green Heat Finance Taskforce recently called for the Scottish Government to partner with the Council in 2024 to develop a framework and guidance for green retrofit equity release products. 

The Council also recently hosted its first Equity Release Adviser Summit in Manchester, with keynote speakers including the Financial Conduct Authority and Financial Ombudsman Service. 

David was a strong campaigner for local and national causes during 13 years as an MP, sitting on the influential Home Affairs and Public Accounts Select Committees and serving across numerous Government departments including the Cabinet Office and Department for Environment, Food and Rural Affairs. He has also been a practicing solicitor for almost 30 years. 

Michelle is a former member of the Financial Inclusion Commission’s advisory panel and spent 13 years with the then-Financial Services Authority, where she played a leading role in implementing its national financial capability strategy and setting up the Money Advice Service (the predecessor to the now Money and Pensions Service), as well as various regulatory roles including financial promotions and pension mis-selling reviews. 

David Burrowes, Council chair, said: “It has been a privilege to represent Council members during a period when lifetime mortgages have moved into the mainstream conversation about later life finances. 

“The Council plays a unique role by bringing specialists together from across the market to work together and set standards for the good of consumers. This has seldom been more visible than during challenging economic times this year and during the Covid-19 pandemic, when we were able to keep the market open for those people who rely on equity release in times of need. 

“2024 promises to be a landmark year where the economic and social policy response to an older population will be put under the microscope of a General Election, and the regulator will consider the role of later life lending in supporting people’s retirement income.” 

Michelle Highman, non-executive director and chair of the standards committee, said: “Council standards play a vital role in providing certainty, security and flexibility to thousands of customers a year. I’m looking forward to taking a seat on the board and building on the great progress to date to help meet consumers’ evolving needs. 

“Behind every enquiry about releasing equity is a homeowner with unmet financial needs, and I am committed to keeping their interests front and centre as we look to promote safe market growth and answer society’s challenges. 

“There is important work to be done to reinforce advice standards and I am looking forward to building on the progress we have made this year to support members in critical areas such as fee transparency and post-completion communications.” 

ENDS 

Notes to Editors 

¹The Equity Release Council board consists of David Burrowes (Chair), Jim Boyd (Chief Executive), Donna Francis (Chief Operating Officer), Mike Hughes (independent Non-Executive Director) and Michelle Highman (independent Non-Executive Director). Michelle Highman’s appointment follows Barry Meeks who served as independent Non-Executive Director from October 2022 to November 2023. 

About the Equity Release Council 

The Equity Release Council (the Council) is the representative trade body for the UK equity release sector with more than 750 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors and other professionals. 

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, more than 650,000 homeowners have accessed £46bn of property wealth via Council members to support their finances. 

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning. 

For more information: 

Visit www.equityreleasecouncil.com 

Email Instinctif Partners at [email protected] 

Phone Libby Wallis, Andy Lane and Mike Norris on +44 (0) 207 457 2020 

Independent energy experts are urging the Scottish Government to work with the Equity Release Council to develop guidance on green equity release.

The recommendation by Scotland’s Green Heat Finance Taskforce is one nine aimed at helping Scotland adopt climate-friendly heating and energy efficiency improvements.

It states: “The Scottish Government should begin work, from early 2024, in partnership with the Equity Release Council, to develop an information framework and guidance for green retrofit equity release products.”

The report highlights the opportunities to support able-to-pay households with attractive and flexible finance for home energy efficiency improvements.

Responding to the report Jim Boyd, CEO of the Equity Release Council, said:

“This recommendation can help to accelerate efforts to innovate in the later life mortgage market and deliver a decarbonised housing market which future generations will benefit from.

“Green equity release products can a vital role in funding the work to retrofit existing housing stock and reduce the housing market’s carbon footprint.

“By tapping into the equity in their homes, older consumers can potentially cut their energy bills and pass the gift of sustainable housing onto younger generations to help safeguard their future by combatting climate change.

“We look forward to working with the Scottish Government and our members to deliver on the Taskforce’s recommendation.”

To read the report click here.

ENDS

The Equity Release Council has appointed a new independent chair to its standards committee, which is responsible for developing the product safeguards that have helped transform the sector.

Michelle Highman’s appointment follows a consultation in which Council members overwhelmingly called for the committee to retain some independence and a competitive selection process.

Michelle is the chief executive of The Money Charity and a former member of the Financial Inclusion Commission’s advisory panel.

She also spent 13 years with the then Financial Services Authority playing a leading role in the implementation of a national financial capability strategy.

Michelle will chair the 11-strong standards committee, drawn from the Council’s membership, that has also recently been re-appointed and expanded.

Its composition reflects the disciplines required to deliver good customer outcomes and includes advisers, providers, solicitors, surveyors and technology specialists.

Meanwhile the Council has appointed two new independent directors while creating seven member-led forums and a member panel. The moves reflect current best practice in non-profit governance and give members more voice and influence.

Michelle said: “It’s an incredibly exciting and important time to join the Council. The organisation has already achieved a lot and has clearly put itself in a strong position to continue to deliver for members and their customers.

“Equity release can be a transformative financial product. Used appropriately it can provide a lifeline to hard-up pensioners or enhance the lives of others and their loved ones.

“But all potential equity release customers need the right support and advice to access products that are safe and appropriate, so they can decide if it’s right for them.

“The standards committee plays an incredibly important role in this process and it’s a privilege to be able to play a part.”

David Burrowes, Council chair said: “Michelle is ideally suited to follow in a long line of experienced and accomplished experts who have overseen the development of equity release consumer standards since 1991.

“Like those before her, Michelle is dedicated to delivering safe and sustainable financial products. I know she will make an important contribution to the continued evolution of our consumer focused safeguards.

“By joining the Council, all members pledge to go above and beyond statutory regulation to deliver good outcomes for consumers.

“The standards committee sits at the heart of the Council, enabling and enhancing those outcomes.”

Equity release allows homeowners aged over 55 to access money from their homes, without having to make repayments until they pass away or go into care, unless they choose to.

The Council’s product safeguards ensure: secure tenure for life; rates that are capped or fixed for life at the point of release; the right to move home; a no negative equity guarantee; and the ability to make voluntary penalty-free repayments, which can reduce interest costs.

Responsibility for approving the Council’s overarching standards and product safeguards remains with its board of directors.

• To read the report click here
• To read the Council’s positioning paper click here

A new independent report on the future of the later life lending market has called for coordinated action by industry, government and regulators to help consumers plan ahead to enjoy better retirement living standards.

The report, Later Life Lending: Great Expectations, sets out the potential role of the UK’s £5trn property wealth in addressing major societal challenges facing the UK’s ageing population.

These challenges include reducing retirement income shortfalls, funding social care costs, enabling the intergenerational transfer of wealth, bridging the gender pension gap and improving the energy efficiency of homes to meet net zero targets.

Authored by Jon Dunckley, Director of About Consulting Group, the report draws on his 25 years of experience and technical expertise in equity release and later life lending, pensions, tax and protection to assess the challenges facing the sector to build on the

transformational changes of recent years.

The report, which was commissioned by the Equity Release Council, outlines 21 recommendations in four key areas – spanning government policy, regulation, industry and consumer education – for later life lending products to fulfil their potential and support good outcomes as a central pillar of modern retirement planning:

• Set the path from the top: Homeowners’ ability to unlock property wealth to meet their later life needs remains a topic of limited discussion. The report calls on government to create a narrative of opportunity that empowers people to take advantage of all their wealth and assets, and tackle legislative barriers preventing them doing so, including inheritance tax and benefit rules. It also calls for property to be integrated within the Money and Pension Service’s (MaPS) guidance guarantee.
• Revisit regulation: The report urges the regulator to commit to an open dialogue with the sector to showcase the positive role property wealth can play in later life finance. It also argues in favour of addressing the regulatory divide and differing CPD requirements which separate the equity release and mortgage markets and also restrict recognition of property within wealth planning . This embeds a ‘silo’ mentality and prevents better rounded conversations to identify the best solutions for consumers.
• Create the experience: In the industry arena, the report calls for updated adviser exams based on new Approved Examination (ApEx) standards and for greater collaboration between trade associations and professional bodies to create stronger referral processes between later life mortgage advisers and other specialist advisers from pensions to wealth advisers. It also challenges the Council and product providers to build on the standards and flexibilities underpinning modern equity release products, while taking inspiration from open banking and wealth planning to make better use of technology.
• Raise awareness: Finally, the report outlines the case for a joined-up, cross-sector communications strategy to help consumers make informed decisions about the role of property wealth and later life lending products in their retirement plans. This includes actively demonstrating the positive benefits that the right advice and product at the right time can deliver to improve people’s experiences of later life.

Alongside the report, the Council has published a positioning paper setting out its current priorities and work-in-progress to support consumers.

The publication follows a milestone year in 2022 when a record 93,421 homeowners aged 55 or older used new or existing lifetime mortgages to withdraw £6.2bn of property wealth to meet daily living expenses, make aspirational purchases or provide financial support to loved ones.

The Council’s membership surpassed 750 member firms with the arrival of global names such as Deloitte, EY and WTW, while the launch of its fifth product standard has made voluntary penalty-free partial repayments available to all new customers since 28 March 2022 to help reduce their later life borrowing costs.

Jon Dunckley, report author and director of About Consulting Group, said:

“Despite seeing major progress on product innovation and advice standards during my 25 years in financial services, many consumers and their advisers still have their eyes closed to the potential of property wealth and later life lending products to improve their life experiences.

“There is huge scope for property wealth to offer real solutions to today’s financial challenges on an individual and societal level. For that to happen we need to develop a more joined-up approach, from government to regulators and advisers.

“This paper channels what I have observed in working with advisers into a practical guide to deliver more opportunities for consumers to improve their financial planning. Changing people’s views will not be like flicking a light switch; it needs a concerted effort to make structural improvements and communicate a more aspirational message about the benefits of property wealth.”

David Burrowes, Chair of the Equity Release Council, said:

“In the twenty years since residential and lifetime mortgages became formally regulated, property wealth has emerged as a major component of modern retirement planning. The UK’s ageing population needs safe and accessible later life lending products to make better later life living standards a reality.

“This report provides essential, and most importantly, objective clarity on the challenges to build on the flexibility and product innovation that has emerged over the last decade. The social benefits of accessing property wealth are beyond doubt, but as this report shows, there are still multiple barriers to overcome.

“The Council is dedicated to working with members, industry, policymakers and the regulator on coherent, consumer-focused solutions so the later life lending market can fulfil its potential. Greater coordination and collaboration across political, regulatory and industry stakeholders are essential.

“These recommendations will inform our work towards a future where every home can provide its owner with the opportunity to enjoy a better standard of life or give vital support to younger generations.”

Download the guidance here

The Equity Release Council has produced a new guide to help consumers better understand and compare fees and charges across different equity release products.

The guide sets out a consistent way of describing fees and charges throughout the customer journey using clear, simple and standardised language that is easy to understand. Its content has been informed by a working group made up of Council members included advisers, providers and legal experts.

All members are being encouraged to adopt the language outlined in the guide when describing fees and charges, to make it easier for consumers to compare between products and their associated costs.

The guide outlines the recommended language for all fees and charges, though not all customers will be subject to every charge listed when taking out an equity release product. A version of the guide is also available to consumers via www.equityreleasecouncil.com/consumers

The aim of the guidance is to support better consumer understanding which is one of the key objectives of the Financial Conduct Authority (FCA)’s Consumer Duty. The guidance also takes account of the recommendations of the Financial Services Consumer Panel which called for “standardised disclosures of fees and charges”.

Current FCA rules require all fees and costs to be clearly outlined to customers before and during the application process. Council standards also ensure all customers receive independent legal advice, alongside regulated financial advice, to ensure they understand the costs, risks and benefits associated with equity release.

The Council is the representative body for the equity release sector with more than 750 member firms, including many household names. It ensures high levels of consumer protection by setting authoritative standards that go beyond statutory regulation.

Equity release allows older homeowners to access the wealth in their homes while remaining there until they pass away or move into long-term care, without having to make regular repayments. Some 90,000 consumers took out £6.2bn in 2022 via Council members, each backed by robust safeguards that ensure rates are fixed or capped for life at the point of withdrawal without ever facing the risk of repossession.

Since March 2022, all new customers who took out plans that meet the Council’s standards can make voluntary penalty-free repayments, which can prevent the interest from compounding and enable people to pay down the capital.

Jim Boyd, CEO at the Equity Release Council, said:

“When people take out any new financial services product such as equity release, they often face a few unfamiliar terms and definitions. Each firm often uses slightly different language which makes it harder for consumers to quickly identify how product fees differ and can be challenging when comparing costs.

“The Council’s guidance describes all the fees and charges that could be relevant to an equity release application, depending on its complexity. Our aim is to establish a set of standard definitions to help consumers to understand their options as they explore the equity release process with a regulated adviser.

“We understand adopting changes takes time, but the arrival of the Consumer Duty is a chance for industry to take stock and move towards a standardised approach. We hope all firms will take this guidance on board when they next revisit their approach, so it becomes the standard across the equity release market.”

The Equity Release Council has appointed two Non-Executive Directors to build on membership and market growth.

Summary

• Mike Hughes and Barry Meeks bring decades of experience in mortgage lending, banking, financial advice, product distribution and technology
• Both will act as independent voices to inform the industry body’s strategic plans and responsible stewardship of its consumer-focused standards
• Over 700 organisations have now signed up to adopt the Council’s standards as the market experiences growing demand for safe, flexible equity release products.

David Burrowes, Chair of the Equity Release Council, comments:

“I am delighted to welcome Mike and Barry to the Council. They both bring a vast depth of experience in retail financial services, and their independent perspectives and focus on putting customers first will be invaluable as our organisation and market continue to evolve.

“These important appointments set us up to build on 30 years of work as we continue to build confidence and choice in the modern equity release market, by promoting sustainable growth and responsible stewardship.

“Property wealth has a vital contribution to make to support the UK’s ageing population. The Council is committed to its unique responsibility to ensure customers’ voices are represented, alongside those of all our members, as we explore the continued safe growth of the sector.”

Mike Hughes comments:

“The way equity release is viewed has visibly evolved in recent years and the Council has been at the forefront of that change, overseeing standards which ensure growth is always safe and with consumer protection at its heart.

“I am looking forward to helping the Council build towards a position where equity release is universally perceived as a mainstream financial option for later life. All homeowners can benefit from making an active choice about whether equity release is right for them. Understanding how modern equity release works as a flexible financial tool alongside pensions and other products within today’s retirement landscape is crucial.”

Barry Meeks comments:

“I am passionate about driving customer-centric thinking in the organisations I work with. The Equity Release Council has made leaps and bounds towards ensuring appropriate consumer protections are in place, and changing perceptions of equity release to become a credible and useful option for later life financial planning.

“There is more work to be done as today’s flexible products grow in popularity, and I look forward to supporting the Council’s dynamic team to drive further change across the sector and improve education for consumers and professionals in neighbouring areas of financial services.”

To read the full press release please click here.

As always, members are encouraged to join in the conversation on social media and in traditional media.

Kind regards,

Equity Release Council

The Council’s autumn market report 2022 has now been published.

Summary

• Midlands and Northern regions see the biggest growth in lifetime mortgage sales to older homeowners in the last four years: Wales (40%), North-West (38%) and West Midlands (31%) lead the way, with every region of the North and Midlands seeing 26%+ growth
• UK housing stock passes a record £7 trillion valuation as strong demand boosts prices
• Despite taking on £100bn extra mortgage debt, property owners have gained £46,000 of equity per household since summer 2020, with 77% of the average home owned in cash
• Just four published complaints about equity release were upheld by the Financial Ombudsman Service in H1 2022, with the Council urging anyone considering equity release to involve family in their decision where appropriate

David Burrowes, Chair of the Equity Release Council said:

“Our Autumn 2022 report shows releasing equity continues to evolve from having been an outlier to being embraced as a nationwide trend, with modern flexible products helping to meet a variety of needs.

“Rising house prices have meant that, while national mortgage debt has grown, it is secondary to vast reserves of housing equity which can help multiple generations to achieve financial security by giving them more options and choices in managing their money.

“More than ever in these challenging times, equity release should neither be a default option or last resort; it should routinely be considered, alongside potential alternatives, with both short and long-term financial goals in mind.

“The greater product choice of the 2010s needs to translate into greater awareness in the 2020s so that every homeowner is prompted to consider where property wealth fits into their financial plans and not miss out on an option that could improve their quality of life.”

To read the press release click here To read the report itself click here.

As always, members are encouraged to join in the conversation on social media and in traditional media.

Kind regards,

Equity Release Council.

The Council has published its latest data for Q1 2022.

To download the report in full click here.

• The number of new and returning equity release customers reached a new quarterly high of 23,395 between January and March this year
• A total of 150,653 new and existing customers have been active during the pandemic, starting from Q2 2020, compared with 171,586 in the previous two years.
• Annual growth in the number of new plans agreed recovered to 21% in Q1 from -9% a year earlier
• Total quarterly lending reached £1.53bn between January and March, up from £1.34bn in Q4 2021
• The average new loan size grew 6% year-on-year, matching the latest inflation figure¹ and surpassed by the 11% annual UK house price rise which added £27,000 to the average home²

David Burrowes, Chair of the Equity Release Council, said: “The popularity of equity release so far this year is the natural result of modern products offering greater flexibility and a property market where growth has far outstripped inflation, alongside an ageing population. “After two years where customer numbers have been subdued by the pandemic, realising gains from rising house prices can make a major difference to people’s quality of life. “Not only are more people considering equity release, but they are doing so for many different reasons and helping old and young alike to fund everyday costs and major life events. “Innovation has made equity release products more adaptable to customers’ changing circumstances. Our standards mean lifetime mortgages remain the most secure type of retirement home finance, with customers protected from interest rate rises, repossession and passing on debt due to negative equity. “However, it remains vital that decisions are carefully considered through both a long-term and short term lens, with family input wherever possible and with financial and legal advice in every instance.”

From today (19 APRIL), all customers considering an equity release product will be required to have at least one face-to-face meeting in person with a solicitor before taking out a plan that meets Equity Release Council standards.

The change marks a return to pre-pandemic requirements and follows a temporary amendment to the Council’s rules which has been in place since April 2020.

This meant cases could still progress where appropriate and customers could access funds despite successive lockdowns and ongoing social distancing measures.

Independent legal advice is one of the core consumer safeguards in the modern equity release market.

All new customers have been required to go through this process since 1991, when the first industry standards were launched. The face-to-face requirement was added in 2013.

To see the updated Standards click here

With many businesses across all sectors forced to adapt their working practices during the pandemic, the temporary amendment permitted a new process based on a combination of written advice and documented video or telephone calls.

This increased the total number of interactions between customers and their legal advisers, allowing for additional checks to establish the client’s identity, mental capacity to enter into a contract and the agreement of all parties involved to proceed with no duress or coercion.

Existing cases which are in progress today and have used this temporary amendment must now be completed by 31 July.

All new cases from today must involve an element of in-person, face-to-face legal advice in order to be accepted.

Industry data suggests the vast majority of cases in Q1 2022 already involved face-to-face legal advice.

David Burrowes, Chair of the Equity Release Council, said:

“The temporary amendment to our requirement for face-to-face legal advice served its purpose well by protecting customers and maintaining their access to vital funds in trying circumstances.

“The Council’s unique ability to bring together firms from across the market helped to identify a practical solution whereby customers were not cut off from money tied up in their homes, which in some cases was key to accessing care services when they most needed them.

“While restrictions have ebbed and flowed during the pandemic, we are hopeful the worst is now behind us. The time is right to return to the default of in-person legal advice while learning lessons about how technology can best support the overall process and customer experience.”

Claire Barker, CEO of Equilaw and Non-Executive Director of the Council, said:

“Independent legal advice is one of the unique distinguishing factors that sets equity release apart from other retail financial services when it comes to customer safeguards and protections.

“Legal firms were able to preserve this important link in the chain throughout the pandemic, despite the adverse operating conditions. Industry collaboration on risk management and sharing of best practice meant we could uphold standards of consumer protection and demonstrate this to lenders and funding partners.

“While face-to-face legal advice remains the gold standard, many uses of technology during the pandemic can continue to benefit customers in the long run. A good example of this is financial advisers using video conferencing to bring family members into conversations about releasing equity or solicitors using online case trackers to liaise with clients.”

To read the report in full click here

• £1m added to the value of UK housing every minute in 2021 as property wealth reaches a record £5.2 trillion
• Equity release interest rates creep up, but more than 300 products are priced at 4% or less with more offering penalty-free partial repayments and downsizing protection
• Return to growth means the equity release market is now six times larger than in 2011, with product choice having more than trebled in the last three years alone

The average equity release customer drew the equivalent of more than seven years of retirement income from their home in 2021, according to the Equity Release Council’s Spring 2022 market report.

With UK property wealth reaching a record £5.2 trillion by the end of last year, the equity release market saw customers withdraw £125,000 on average as a single lump sum or via incremental ‘drawdowns’.

The Council’s analysis shows this sum is equivalent to more than seven years of a single pensioner’s typical net income and nearly four years for the typical pensioner couple.

Low interest rates by historic standards and increasing product flexibilities mean customers can access potentially life-changing sums with more ways of managing the overall cost of borrowing in later life.

The market report shows product pricing [3] crept up year-on-year from 3.95% in January 2021 to 4.16% in January 2022. However, more than 300 products are now available at rates of 4% or less, while the average customer secured a rate of 3.39% on their loan during H2 2021.

Uptick in products allowing penalty-free part repayments and downsizing protection

The second half of the year also saw more products adding the option to make voluntary penalty free partial repayments, with 85% of products allowing this in January 2022 compared with 68% in July 2021.

From 28 March, this feature has become a fifth ‘product standard’ or prerequisite for all products recognised by the Council. It enables customers to reduce their loan sizes and borrowing costs where possible if their circumstances change, without committing them to regular repayments or risking repossession.

The percentage of products offering downsizing protection – giving customers the freedom to repay their loans in full, with no early repayment charge, in the event of downsizing – also increased from 50% in July 2021 to 63% in January 2022.

Lifetime mortgages make a significant yet stable contribution to later life lending Overall, equity release lending activity for 2021 was six times greater than in 2011 (£4.8bn vs. £789m) with product choice having more than trebled in the last three years alone (665 in Jan 2022 vs. 202 in Jan 2019).

This forms part of a wider increase in borrowing activity among older homeowners, with lifetime mortgages making a consistent contribution to later life lending activity – accounting for around a quarter of new loans taken out by customers aged 55+ and three quarters of those taken out by customers aged 65+ since the end of 2019.

The Council’s analysis of wider property market activity shows the total value of UK housing reached £6.7 trillion at the end of 2021, rising by £1.6bn each day on average or £1m every minute. When mortgage debt is discounted, it leaves the nation with an unprecedented £5.2 trillion of property wealth, equivalent to £211,000 per household.

As equity release products grow in popularity as a way to access these funds, the Spring 2022 report includes five considerations for consumers to help manage later life borrowing costs.

David Burrowes, Chair of the Equity Release Council said:

“After years of putting money away in bricks and mortar, older homeowners are turning the tables and taking funds from their homes in order to boost their retirement income, meet oneoff costs and gift a living inheritance to family.

“With £1 million added to the value of UK housing every minute last year, the options afforded by property wealth will feature in many people’s thoughts as they make financial plans for the future.

“The equity release market’s return to growth is part of a wider pick-up in later life lending activity, and the flexible design of modern lifetime mortgages gives customers more ways to manage their finances and access life-changing sums of money at a lower cost.

“While many aspects of today’s market have been transformed in the 30 years since consumer safeguards were first established, firm foundations remain in place so no customer need ever worry about owing more than their home is worth and can rest easy in the knowledge they can remain in their home for life with no threat of repossession for not keeping up with repayments.

“As we move into an environment of growing cost-of-living pressures, the importance of rigorous advice will be greater than ever so that decisions to release equity continue to provide long-term satisfaction as well as short-term relief.”

Click here to view the rules and guidance.

From today all new equity release customers can benefit from a product feature that has already enabled borrowers to reduce their interest costs by tens of millions of pounds.

The option to make penalty-free partial loan repayments has become an increasingly common feature of modern equity release products.

It enables customers to mitigate the effects of compound interest and cut their borrowing costs in later life.

This option has now been made a fifth ‘product standard’ or prerequisite for all plans recognised by the Equity Release Council, the representative sector body.

It adds to a range of features and flexibilities and the Council’s four existing product standards, in place since 1991, that form the bedrock of the modern market:

• The right to remain living in their home for life, with no repayment obligations to create a risk of repossession before they pass away or move into permanent care;
• A fixed or capped interest rate for life, so customers’ existing borrowing is never affected by interest rate rises;
• A no negative equity guarantee, meaning customers will never owe more than their home is worth and can never leave any debt to their families or other beneficiaries; and
• The right to port (move) their loan to another property providing it is acceptable under lending criteria.

Equity release allows people aged over 55 to borrow against the value of their homes without making repayments, unless they choose to, with the interest and loan usually settled when the customer passes away or moves into permanent care.

Customers of lifetime mortgages, which account for the majority of equity release products, made more than £78m of penalty-free partial loan repayments last year. This reduced their
interest costs by millions and increased their chances of leaving a traditional inheritance to loved ones when they pass away.

More than 125,000 penalty-free part repayments were made in 2021, averaging £608 each time.

By reducing their loans without committing to ongoing repayments, these customers will make a combined saving of £39m in interest costs over the next 10 years or £99m over 20 years.

The Council’s standards, rules and guidance set out additional voluntary requirements for product providers, financial advisers, legal professionals and others involved in the equity release process. They complement firms’ regulatory responsibilities in order to safeguard consumer interests and include a guarantee that all customers must receive independent legal advice before releasing equity to understand the commitments involved.

Nearly 700 firms have signed up to practice in line with Council standards, including all current product providers. More than 75,000 new and existing customers accessed funds from their properties last year via Council members to support their finances.

Independent research from Mintel’s annual Equity Release Schemes study recently revealed “strong consumer protection” is seen as the most important feature of equity release schemes among people who would consider them.

Jim Boyd, CEO of the Equity Release Council:

“The right to remain in your home for life, with no requirement to make ongoing repayments and no threat of repossession, has been central to the appeal of equity release since 1991 and remains a core pillar of the modern market.

“Our new product standard adds to this by ensuring people have the freedom to reduce their borrowing if circumstances change. It enables equity release customers to mitigate the effects of compound interest and reduce their borrowing costs in later life, which we know is often one of their main concerns.

“The market’s evolution means many customers are already saving tens of millions of pounds in interest costs by making penalty-free partial repayments as and when they can afford to. By introducing the new product standard, we expect many more customers are set to benefit as all new products will have this safeguard built in.

“Equity release today is a flexible financial planning tool for a range of scenarios, from gifting to family to supporting better living standards over longer lives in retirement. Consumers should always use a Council member to explore their options and alternatives to equity release, to benefit from product protections and expert advice to decide if it is right for them.”

The Council has published its latest market data for Q4 and FY 2021.

To download the report in full click here.

• Record amounts of property wealth were accessed via equity release products in Q4 and across 2021 by more than 76,000 new and returning customers, according to the Equity Release Council.
• Its figures show the sector has not only maintained its resilience throughout the uncertainty of the pandemic but has now returned to growth for the first time since 2018.
• Total lending to homeowners aged 55+ via lifetime mortgages and home reversion plans grew by 24% year-on-year, compared with 31% lending growth across the wider mortgage market.
• Average loan sizes also increased, partly influenced by rising property prices and an increase in wealthier customers using equity release as part of their financial planning.

David Burrowes, Chairman of the Equity Release Council, said: “Cost of living pressures are just one of many reasons why homeowners are choosing to cash in on years of wealth accumulated in their homes. Increasing loan sizes partly reflect the rise in house prices and a more affluent type of customer using lifetime mortgages to plan their finances or gift a living legacy to family members.

“Having proved itself to have solid foundations through a period of uncertainty, the equity release market’s return to growth has just as much to do with trust and innovation as it does with external factors as households look to manage their finances in later life.

“Equity release products have continued to evolve in recent years with new providers and features adding to their appeal. Increasingly flexibility has brought lifetime mortgages closer to their residential equivalents, by offering capital or interest payment options alongside long-term, time-honoured protections against rising interest rates and negative equity”.

Standard Life Home Finance today announces that it has joined the Equity Release Council following the recent launch of its range of innovative Lifetime Mortgage products.

These new products underpinned by Council standards will provide consumers with access to more options backed by rigorous consumer protections as equity release embeds its role in mainstream financial planning.  The Standard Life Home Finance products can now display the Council’s endorsement mark bearing the words “proud to be a member of the Equity Release Council”, a recognizable statement of quality and assurance for consumers.

Equity release product options have more than quadrupled from 202 at the start of 2019 to 796 today while interest rates have fallen by almost two percentage points in the last five years from an average of 6.20% in 2016 to 4.23% now².

Membership of the Council has also continued to grow throughout 2021 by attracting new entrants to the market such as Standard Life Home Finance. Substantial growth has been seen among both individual members and member firms, which have grown 46% and 60% respectively in the last two years.

Equity release products provide secure and flexible finance for older homeowners, backed by strict safeguards embedded in the market for 30 years. The Council’s recent report, Home advantage: intergenerational perspectives on property wealth in later life, found 57% of homeowners are interested in accessing money from their property as they age, while 40% agree it is becoming more acceptable to have a mortgage in later life¹.

Jim Boyd, Equity Release Council CEO, said: “The Standard Life Home Finance commitment to build its products around the Council’s consumer protections is a clear sign of confidence in the market and the bedrock of Standards that underpin it. The fact that lifetime mortgages will sit alongside Standard Life’s pensions, investments and retirement products shows equity release is now a core consideration in later life financial planning.

“The equity release market has seen a sustained increase in competition and innovation over the last ten years. It is important we build on this platform to meet the expected rise in demand, as lifetime mortgages gain further recognition as a practical, common-sense and aspirational choice in the right circumstances.”

Scott Robertson, Standard Life Home Finance, Board Member said “We are delighted that Standard Life Home Finance has become a member of the Equity Release Council. The innovative range of customer centric equity release products will provide more options to help people plan for their future, and the Council’s endorsement mark will be an added surety for customers.

”We look forward to working closely with the team at the Equity Release Council as it leads the way in ensuring the very highest standards across the industry, and we are focused on playing our part in the ongoing development of this relationship.”

• 45% of mortgaged homeowners aged under 40 got onto the housing ladder “much later” than they expected, compared to 29% of those aged over 40
• 43% of mortgaged homeowners under the age of 40 relied on financial help from family or friends to buy their first home, compared with 23% of those aged 40+.
• Delayed homeownership means nearly one in three (32%) homeowners with a mortgage are unsure if they will become ‘mortgage free’ before they retire or have already ruled it out
• However, attitudinal shift is underway as nearly half of mortgaged homes believe their generation’s attitude to debt in later life is more accepting than their parents’
• Nearly two in five homeowners in 60s view their mortgages as an investment in their future because they have built up an asset over time.
• One in three believe financial services providers are getting better at offering later life loans

Nearly half (45%) of mortgaged homeowners under the age of 40 got onto the property ladder “much later” than they expected, compared with 29% of over-40s, according to new research by the Equity Release Council (the Council) which highlights the British public’s changing relationship with bricks and mortar.

A study of 5,000 UK adults’ financial experiences also shows 43% of mortgaged homeowners under the age of 40 relied on financial help from family or friends to buy their first home. In comparison, just 23% of those aged 40+ relied on similar support to get onto the property ladder.

The rise of ‘delayed homeownership’ means having a mortgage in later life is likely to become more usual for consumers. Nearly one in three (32%) homeowners with a mortgage are unsure if they will become ‘mortgage free’ before they retire or have already ruled it out. One in five (20%) feel the idea of retiring ‘mortgage free’ is unrealistic.

Instead, the Council’s research highlights attitudes to secured debt in retirement are changing, as nearly one in four mortgaged homeowners (24%) say they don’t mind if they are still paying off their loan in later life. Nearly half (47%) believe their generation’s attitude to debt in later life is more accepting than their parents’, with those aged 25-34 most likely to feel this way (52%).

The findings show the majority (70%) of mortgaged homeowners feel comfortable with their current level of mortgage debt, rising to three in four (75%) of those aged 50+. Many also feel taking out a mortgage in later life can benefit them: 32% see it as a way to provide money to improve their lifestyles, while 31% see it as a way to access funds to help out family members.

One in three mortgaged homeowners (33%) feel financial services providers are getting better at offering mortgages to people in retirement. However, the need for clear information is apparent as 36% say they are confused about what mortgages are available to people in later life. The Council’s research suggests confusion is highest among the under-40s (42%).

Jim Boyd, CEO of the Equity Release Council, comments:

“The realities of delayed homeownership are prompting people to reassess their attitudes to secured debt in later life. There are clear signs that paying a mortgage in retirement is no longer a taboo: for many people it can make the difference between financial hardship and enjoying a more comfortable lifestyle while also supporting family members.

The ability to use property wealth to improve your retirement experience is a choice many homeowners have earned through years of paying a mortgage and building an asset. Lifetime and retirement mortgages allow people to make the most of property as a source of wealth as well as a home. Our findings suggest later life lending products are likely to be even more important for future generations of retired homeowners than they are today

“It’s vital we continue to break down the remaining misconceptions about people’s choices in retirement and improve awareness of the options available. The consumer protections involved when exploring equity release are designed so people can make educated and informed decisions, which means considering all potential alternatives and often leads to a different course of action entirely.”

To download the report in full click here

• Over-55 homeowners unlocked £1.15bn of property wealth via equity release during Q3 2021, down 2% from Q2 (£1.17bn) but up 19% (£963m) compared with Q3 2020 as the UK was emerging from the first wave of the pandemic.
• New and returning customers have accessed £3.46bn so far in 2021 – surpassing previous years and putting the market on track for over £4bn of activity this year.
• Fewer customers access drawdown funds in Q3, but new plans and further advances both saw growth.
• Average new lump sum plans reduced from £129,558 in Q2 to £121,464 in Q3 as the first Stamp Duty holiday deadline passes, while the average new drawdown plan size is unchanged.

David Burrowes, Chairman of the Equity Release Council, said: “The equity release market has been a steady ship in turbulent times with activity broadly stable now for four successive quarters. The inevitable pandemic slowdown has been followed by the gradual return of confidence, helped by the robust performance of the wider property market.

“While annual activity has hovered close to £4bn since 2018, the market hasn’t stood still and the available product range has more than doubled since then. Homeowners in need of extra funds for later life are increasingly look to equity release as a positive step, in the right circumstances, to benefit from a source of wealth they have built up over many decades.

“The Stamp Duty holiday inevitably impacted consumer behaviour over the summer and into autumn, with average loan sizes and drawdown activity fluctuating. Looking ahead, the ability to gift money to family members and share the proceeds of long-term house price growth is likely to remain an attractive option.

“Equity release can both help to close the financial gap between generations and allow people in later life to experience and enjoy the benefits of providing a living inheritance.”

Autumn market report: Mortgage repayments soared 20% to reach a record £38bn in H1 2021 as lifetime product choice doubles in the last two years

Download the autumn market report 2021 in full here

Download the press release in full here

Summary

• UK mortgage capital repayments have increased by 20% year-on-year, bringing the total amount of debt repaid in the first half of 2021 to an unprecedented £38bn – equivalent to £200m a day or £3,500 for every mortgaged household.
• The trend has been fuelled by regular repayments and overpayments reaching record heights, new borrowing ahead of the Stamp Duty deadline and fewer mortgage payment holidays.
• Nation is now carrying over £1.5trn of mortgage debt for the first time on record, but factors including house price rises mean for every £1 of mortgage debt, there is more than £3 of equity in our homes.
• The overall value of UK housing stock has risen from £5.67trn to £6.42trn over the last year, with private property wealth reaching a new high of £4.87trn.
• Lifetime mortgage product options have doubled in the last two years which, combined with low rates and flexible features, increases the appeal of using equity release to help meet later life financial needs.

David Burrowes, Chairman of the Equity Release Council comments:

“UK households are converting unprecedented amounts of mortgage borrowing into property wealth as we look to move on from the worst of the pandemic. Combined with property price rises fuelled by the Stamp Duty holiday, homeowners have record equity to potentially draw upon in later life.

“The transformation of later life mortgages in recent years has given people more opportunities to access their biggest source of wealth. We are seeing mindsets change to the point that tapping into property wealth is now a common consideration to meet various retirement needs, from topping up pension income to providing a ‘living inheritance’ via gifting to younger generations.”

“The modern equity release market has shown resilience in the face of uncertainty to climb back towards pre-pandemic levels. The disruption of the last 18 months has not slowed the pace of innovation in lifetime lending, and it is important the market continues to evolve to address the financial challenges people will face in the post-pandemic world.”

Market context

•  Strong performance in the housing market saw UK private property wealth increase from £4.21 trillion at the end of H1 2020 to an unprecedented £4.87tn at the end of H1 2021.
• The overall value of UK housing stock rose from £5.67tn to £6.42tn over the last year.
• Households repaid more than £19bn of mortgage capital during both Q1 and Q2 2021, having never repaid more than £18bn in any previous quarter.
• Rising property prices means more than three quarters of the value of the average home is tied up in equity rather than debt, leaving £201,642 of property wealth for its owner to draw on.
• House price rises over the last year will have helped to balance out the impact of compound interest for some existing equity release customers. With the annual rate of UK house price growth having been above 7% since January 2021, a customer paying 6% interest could have seen their property equity grow faster than their loan, while a customer paying 3% interest could have seen their equity grow more than twice as fast.

Overall customer activity

•  Across the first half of 2021, 35,860 new and returning customers were served, unlocking £2.3bn of property wealth to support their finances.
• Customer numbers steadily rose in H1 2021 with June seeing the most new plans agreed (3,348).
• New customer levels remained broadly consistent with those seen in H2 2020, dipping slightly from 21,917 to 21,596 new plans taken out, but higher than this time last year when the first lockdown slowed activity (18,420 new plans).
• Returning drawdown numbers remained subdued – a trend that has persisted since the onset of the pandemic – while the number of further advances agreed was slightly below that of H2 2020.

Product features and pricing

• The total number of equity release products available increased to a record high of 668 in July 2021, from 448 six months earlier. Customers have access to more than double the number of product options than two years ago.
• Strong competition has meant consumers have access to double (127%) the number of product options than two years ago.
• More than two thirds (68%) of products allow customers to make voluntary capital repayments with no early repayment charge, while nine in 10 (89%) products offer fixed early repayment charges.
• The average equity release rate crept up modestly to 4.26% but there are still more options available today with rates of 4% or lower than a year ago.
• Interest rates have plummeted by nearly two percentage points over the last five years.

Customer trends

• The average age of new customers remained stable in H1 2021 at 70 years old for new drawdown customers 68.4 for new lump sum customers.
• Almost a third (30%) of new drawdown single plans are being taken out by female customers, the highest level seen in the last two years.
• The average house price of new customers continues to rise to record levels for both new drawdown (£419,166) and lump sum (£406,139) plans. This comes as UK property prices have increased over the last year to reach an average of £265,668.
• Across new lump sum and drawdown customers, the average amounts of property wealth released increased slightly but were offset by higher house prices, meaning loan-to-values remained stable.

ENDS

• One in three homeowners (32%) see their mortgage as being like an investment in their future
• Nearly half (48%) of homeowners with a mortgage agree they are able to save more because their loan is cheaper than renting.
• Two in five (40%) homeowners believe it is becoming more acceptable to have a mortgage in later life, while 57% are interested in accessing money from their property as they age
• Equity Release Council publishes intergenerational report supported by Age Partnership, Aviva, Canada Life, Equilaw, Just Group, Key, Legal & General and Scottish Widows Bank

Today’s homebuyers could end up £326,000 wealthier over a 30-year period than people who rent, without even considering potential house price growth, according to a new report by the Equity Release Council.

The report – Home advantage: intergenerational perspectives on property wealth in later life – examines 10 trends(1) that have altered the financial landscape for pensions and homeownership over the past three decades.

It highlights how the benefits of homeownership are set to become even more critical to people’s financial security and wellbeing in later life, but also warns of lifelong inequality for those who are unable to get onto the property ladder.

While many homeowners believe having a mortgage is becoming more acceptable in later life and are interested in unlocking cash from their home as they age, the report found more than half (54%) of people who have not yet bought a home think it is “unrealistic” they ever will.

Low interest rates reduce the cost of building property wealth The Council report explores the experiences and outlook of multiple generations, with a focus on people in their sixties nearing retirement and those in their thirties with most of their working lives still ahead.

The analysis shows continuing low interest rates and investment returns will make it very challenging for future retirees to build an adequate income, as people face more individual responsibility to save for longer lives in a less secure job environment.

For every £1,000 the average employee earns in their final salary before retiring, they can expect just £150 from a defined contribution (DC) pension compared with £670 from a defined benefit (DB) scheme.

At the same time, today’s low interest rates make homeownership more affordable than renting for anyone who can fund a deposit.

The typical homeowner can gain a financial advantage of £326,214 over thirty years compared with renting by making lower monthly payments and building up their housing equity, even before any potential house price gains are factored in(2).

Acceptability of later life loans on the rise One in three homeowners (32%) see their mortgage as being like an investment in their future because they are building up an asset over time.

Nearly half (48%) of those with an existing loan also say they can save more because their payments are cheaper than renting.

The report underlines how homeownership underpins greater financial security in later life, by building an asset that can be realised through downsizing, using a lifetime or retirement mortgage or a combination of both.

More than two in three (68%) homeowners say they feel confident about their financial future, compared with just 45% of adults who do not own their own home. The majority (59%) of people in their thirties feel their retirement prospects will be better if they are homeowners.

Two in five homeowners (40%) also believe it is becoming more acceptable to have a mortgage in later life, while significantly more (57%) are interested in accessing money from the value of their home as they age.

This includes nearly three in four (74%) homeowners in their thirties.

David Burrowes, Chair of the Equity Release Council, says: “Property and pensions form the bedrock of financial security for most people, but the rules of engagement have changed substantially over the last 30 years.

“People today are living and working longer with responsibility to fund their later years and will need to think differently about their financial decisions at different life stages.

“For people who manage to buy their own home during their working lives, the extra confidence and flexibility this provides will be even more critical to their financial wellbeing than it is today.

“While today’s homebuyers are borrowing larger sums for longer, they are also building considerable equity which can help meet future needs for themselves and their families.

“Perceptions of debt in later life are changing, and property wealth is transitioning from having been the ‘emergency fund’ to an enabler of life ambitions and financial goals.

“This fundamental shift means products, advice, policy and financial education must also keep evolving, so more people can savour the experience of longer lives.”

Financial education and access to homeownership need addressing The Council’s report shows how future generations are increasingly likely to look to property wealth as a component of retirement planning and calls for greater education about the options and the benefits of doing so.

It calls for further product development to reflect changing consumer needs, and also highlights the role of gifting via equity release in transferring property wealth between generations.

Two in five (41%) people in their thirties have or expect to receive an inheritance in the form of property or money from property. However, many do not expect to receive this until their mid40s to 60s, significantly later than the typical first-time buyer age.

The report also calls for Government to follow up on its pledge to “help Generation Rent become Generation Buy” with plans to address the fact that 54% of people who are not yet homeowners feel this goal is “unrealistic”.

This includes nearly half (49%) in their thirties and, across England alone, is equivalent to 4.5m households in the private and social renting sectors(2).

Jim Boyd, CEO of the Equity Release Council, says: “Hopes that younger generations will enjoy greater opportunities over longer lives in good health compared to their parents must be balanced by significantly more complicated financial decisions they face, driven by the realities of elevated property prices and the decline of generous pensions schemes.

“The long-term impact of Covid-19, which has amplified social trends and tensions including perceptions of intergenerational inequality, is just one factor that will shape people’s financial experiences over the next 30 years.

“Our report anticipates that people who are able to access homeownership during their working lives will not only benefit by over £300,000 compared to renters, but their ability to unlock property wealth will become even more important to their prospects of financial wellbeing in later life.

“This trend places significant responsibility on industry, regulators and government to support and enable safe access to property wealth, while also addressing the barriers to homeownership that risk exacerbating social division and fair outcomes across generations.”

Click here to download the full press release.

• National Insurance-style surcharge required to solve £7bn care funding crisis
• Top-up insurance policies could involve property wealth
• Public education needed to address widespread misconceptions on care costs
• UK’s ageing housing stock hampering at-home care

To view the webinar click here.

Consumer education, product innovation and property renovation must be among the priorities to support a more sustainable social care sector, experts have warned.

The comments were made when a panel met to discuss the findings of an Equity Release Council, Pure Retirement and My Care Consultant report on housing wealth and the social care funding crisis.

Damian Green, MP and chair of the all-party parliamentary group on adult social care and longevity, said: “There is a £7bn funding gap the Government needs to fill to provide social care funding.

“A National Insurance surcharge for over-50s, topped up with an insurance policy that could involve property wealth, can be part of a long-term solution that is sustainable and fair across generations.”

Panellists also highlighted the importance of tackling issues with the UK’s ageing housing stock as well as the ongoing care staffing crisis.

Jacqueline Berry, My Care Consultant director, said UK housing was among Europe’s oldest with only 7% built post-2000 making home adaptations a necessary use of equity release among the elderly.

“Homecare is becoming an increasingly popular choice and people are more open to using property wealth to pay for this,” she said.

“But the safety, quality and appropriateness of our housing for those in later life with care needs must be considered by local and national governments to ensure homecare is a viable option.”

Mr Green added: “We need to build more specific supported-living housing as the UK falls far behind on this compared to lots of other developed countries.

“The care staffing crisis is also particularly acute. There simply aren’t enough domiciliary care staff to meet growing demand.”

The experts reiterated calls for a major public education campaign to put care at the forefront of public consciousness, mirroring the success of workplace pension reforms.

Mr Green said: “One of the quietest and biggest successes of our political system has been the cross-party support of the auto-enrolment pensions policy.

“Millions of people will have a more comfortable retirement as a result, and we urgently need to reflect this in care funding too by normalising saving for care costs very early on in life.”

The panellists also discussed the importance of a regulatory framework that fosters financial product innovation to support people and their families to meet later life care needs.

Paul Carter, CEO of Pure Retirement, said: “Government, policymakers and providers need to come together so we can have the right funding structures to make more product innovations viable.

“The vision is there and if we collectively work together, we can innovate to provide the solutions that people really need to tackle the issue of social care funding head-on.”

The debate follows a report by the Equity Release Council, supported by Pure Retirement and My Care Consultant.

Entitled Solving the social care funding crisis: perspectives on the contribution of property wealth it uncovered widespread confusion and concern about paying for later life care.

In addition, it highlighted how two in three (67%) over-50s are determined to stay living in their homes if they need care in future and found widespread support for some level of state-funded care.

Speaking after the debate, David Burrowes, chair of the Equity Release Council and the chair of the debate, said:

“The social care sector is a highly complex area and a source of major tension for individuals and families across the generations, compounded by local and national funding challenges.

“Yet almost half of the population are united in feeling that social care should be funded for everyone, up to a certain point, with the option to top this up with your own finances.

“The equity release sector has an important role to play in supporting a sustainable solution and help more people achieve their wishes to be cared for in their own homes.”

Wealth management group St. James’s Place (SJP) has become the latest firm to join the Equity Release Council (the Council), highlighting the broad appeal of modern equity release products with consumers.

The latest addition marks a strong two years of growth for the Council, which has seen individual membership increase by 50% to more than 1,500. Meanwhile, the number of firms signed up to the representative trade body has almost doubled during this period to pass 600.

SJP is a leading UK wealth management organisation and a FTSE 100 company. It offers personalised advice on financial, investment and tax planning with over £135bn of client funds under management.

Equity release advice has formed part of the SJP proposition for more than 15 years. Its decision to join the Council has been prompted by the pace of change and innovation in the sector, as new plans and product features make equity release a flexible financial planning tool for clients in later life.

Modern equity release products provide secure and flexible finance for older homeowners, backed by strict safeguards embedded in the market for 30 years. Customer activity has remained stable in recent years, despite political uncertainty and unprecedented economic challenges. Nearly £4bn of property wealth was accessed by new and returning customers in 2020.

Jim Boyd, CEO of the Equity Release Council said: “St James Place’s membership is a vote of confidence in modern equity release and the rigorous standards that underpin it. St James Place’ has long recognised that equity release offers an important option for its clients. Its support underlines that today’s products play a multi-functional role for a broad mix of customers, including those considered high net worth.

“Our growing membership is becoming increasingly diverse as wealth managers, pensions specialists and mortgage advisers find their clients weighing up a host of decisions in later life, from care planning to the transfer of wealth between generations. We welcome St James Place’s long-term commitment to the market and look forward to working with it and other members to maintain high standards of customer outcomes.”

Paul Johnson, Head of Mortgages at St. James’s Place Wealth Management said: “We have been providing equity release for over 15 years and, with the market developing at such a pace, we want to ensure we continue to maintain the high standards of advice required for clients to take out equity release plans.

“The Equity Release Council continues to lead the way in developing the highest standards of consumer-focused advice, so our partnership is a natural evolution of our work in this sector. We are looking forward to benefitting from the ongoing support the Council provides to the industry.”

• Policy debate hosted by the Equity Release Council (the Council) and Key discusses the need for policy action to address women’s retirement finances
• Panellists included the Work and Pensions Select Committee Chair, Women and Equalities Select Committee Chair and the Association of British Insurers
• Panellists also discussed changes to auto-enrolment, back-to-work policies and tackling confidence as ways to close the gender pension gap
• Work and Pensions Select Committee Chair confirms pension freedoms inquiry will look at advice and guidance to ensure all assets are considered for retirement, including property wealth
• Analysis of Government data shows pensioner income has increased by just 2% for single women in the last five years, compared to 11% for single men

Action must be accelerated to encourage greater gender diversity in the adviser community and help support female clients, as part of a raft of measures needed to close the gender retirement income gap, according to senior industry figures and leading parliamentarians at a virtual policy debate hosted by the Equity Release Council and Key.

The debate follows the Pension/Property Paradox: revisiting the retirement confidence gap report by the Council and Key, which explored gender differences in retirement planning and the impact of the pandemic on financial confidence in later life. The research found nearly half of working women aged 55+ are anxious about running out of money in retirement1, highlighting the need for better engagement to improve financial prospects.

The debate discussed a range of factors impacting the gender gap in retirement savings, with panellists including:

• Rt Hon Caroline Nokes MP, Chair of the Women and Equalities Select Committee
• Rt Hon Stephen Timms MP, Chair of the Work & Pensions Select Committee
• Dr Yvonne Braun, Director of Policy, Long Term Savings and Protection, Association of British Insurers (ABI)
• Will Hale, CEO of Key
• David Burrowes, Chair of the Equity Release Council and chair of the debate

Dr Yvonne Braun of the ABI commented: “In the advice profession men vastly outnumber women. A male-dominated profession will find it harder to attract female customers.”

David Burrowes, Chair of the panel and of the Council commented: “It is vital that we explore solutions to best support women to save more in the run-up to retirement and to think proactively and holistically about all options available.”

Key’s FY 2020 data shows 26% of equity release clients are single women compared to 14% of single men, highlighting the importance of property wealth as a source of later life funds for single women. While the majority of its customers are married couples, it is vital that women play an equal role when discussing their retirement options and make joint decisions given their longer average life expectancies.

Despite women having lower retirement savings on average, they are also less likely than men to consider later life lending products as an alternative source of retirement income (23% vs 31%)1.

In an important step towards encouraging a more holistic approach to retirement planning, Rt Hon Stephen Timms MP confirmed the Work and Pensions Select Committee inquiry into pension freedoms would look at advice and guidance to ensure all assets are considered, including property wealth.

Will Hale, CEO of Key added: “There is a huge opportunity in this market to engage women. Our client base is diverse, so the advice provision needs to reflect that. There are not enough female advisers in the industry and we need to address these imbalances by accelerating the focus on recruiting and training more female advisers.”

Policies to help close the gender retirement gap in the future

Panellists highlighted key policy measures to help close the gender retirement gap in the future, including the potential to evolve auto-enrolment. Dr Yvonne Braun of the ABI added: “Three quarters of part-time workers are women, which means many are therefore locked out of auto-enrolment. Contributions for pensions should be counted from the first pound people earn.”

Panellists also emphasised the importance of creating well-paid jobs and getting women in particular back into the workforce. Rt Hon Caroline Nokes MP, commented: “We need to do more to foster greater confidence for women in the workplace and in talking about money more broadly, all of which will contribute to greater levels of retirement savings in the future.”

The impact of Covid and what needs to be done here and now

Panellists also warned of the negative impact the pandemic has had on women when it comes to retirement. This comes as Government figures reveal the annual average pensioner income for single women has increased by just 2% over the last five years, compared to an 11% increase for single men. As a result, the gender retirement income gap has more than doubled from £1,560 a year in 2014/15 to £3,276 in 2019/202.

Will Hale, CEO of Key added: “Initiatives like auto-enrolment and addressing the gender pay gap will help in the long-term, but those approaching retirement will not reap these benefits. They need help in the immediate term to navigate their way to achieving a comfortable retirement.”

Rt Hon Stephen Timms MP said: “People need to have sufficient advice on their retirement funding choices, and a Pension Wise appointment should become the norm.”

Rt Hon Caroline Nokes MP added: “Raising families is a joint enterprise and Covid has thrusted many into hard fiscal choices about who should work and who should provide care for children or relatives. This shouldn’t be the case in 2021 so we need to talk more about shared savings.”

The Equity Release Council has created a Funders Forum, an expert committee made up of later life funders and product providers.

The Forum will provide specialist advice on trends and policy implications for the funding of later life lending products as consumer appetite grows.

Its launch follows three high-profile funders joining the Council’s membership: Phoenix Group, Pension Insurance Corporation and Reinsurance Group of America. They will sit on the Forum alongside Aviva, Legal & General, Just Group, Canada Life, Liverpool Victoria, Hodge, M&G, Scottish Widows and Rothesay Life. All funders and providers who are Council members are eligible to join.

The Forum is chaired by Scott Robertson, Head of Phoenix Equity Release, and will report to the Council’s main Board on opportunities and issues impacting the funder community.

Its work will guide the Council’s efforts to support the market’s growth and ensure its standards remain fit-for-purpose to safeguard consumers. It will also inform the Council’s responses to prudential regulatory developments and consultations that impact later life lending.

The creation of the Forum is indicative of the long-term growth of equity release and later life lending sector to meet consumer demand. The last 18 months alone have seen equity release product options increase by 88%, driven by existing and new providers¹.

Jim Boyd, CEO of the Equity Release Council, commented:

“The UK’s ageing population offers significant opportunities for funders to provide new product innovations to meet the changing needs of customers over ever longer lives.

“The Forum brings together representatives of major funders with industry-leading technical expertise. It will be crucial in advising the Council as we seek to promote safe and sustainable market growth built on flexible finance and strong consumer protections.”

Scott Robertson, Chair of the Funders Forum and Head of Phoenix Equity Release commented:

“The Forum will provide later life funders with a setting for healthy discussion and debate to anticipate and address market developments. I am grateful for the opportunity to chair this new initiative and look forward to promoting collaboration across the sector. Later Life lending is becoming an increasing part helping customers in their financial planning in retirement  in the UK. The growth of long-term sustainable funding supplies is essential in providing consumers a wide range of products that allow them to manage their retirement.”

ENDS

The Equity Release Council (the Council) has announced the creation of a Risk, Policy and Compliance team. The two new senior hires – a Head of Risk, Policy and Compliance and a Risk, Policy and Compliance Manager – come as the organisation grows to meet consumer needs and uphold consumer protections.

The Risk, Policy and Compliance team will help to enhance and deliver the Council’s standards as the organisation continues to evolve to support a consumer-focussed later life lending market.  The team will play a major role as an oversight function, while developing information and recommendations to the Council’s Standards Board and committees. These latest hires follow the addition of two senior hires at the Council last month – a Business Development and Membership Manager and a Public Affairs Manager – bringing yet more experience and expertise within the Council.

Kelly Melville-Kelly has been appointed Head of Risk, Policy and Compliance. She brings over 20 years of financial services expertise, working with both lenders and networks in later-life lending, helping to drive improvements and create best practice. Kelly has previously held regulated positions at Alliance & Leicester and Legal & General.

Sue Read is taking up the role of Risk, Policy and Compliance Manager, bringing a wide range of experience as a BDM, underwriter, operations manager, trainer, compliance officer and, most importantly, adviser, across a number of firms and networks. This breadth, covering over 30 years, provides a unique insight into both consumer and adviser perspectives.

Jim Boyd, CEO of the Equity Release Council said: “I am delighted to welcome Kelly and Sue to the Council at this time of growth for our organisation. These latest hires complement our professional capabilities and will help to inject even greater pace into the Council’s member and consumer-focused initiatives.

“The creation of a Risk, Policy and Compliance team adds further weight to our role as a standards-setter in the later life sector, as we continue to evolve and revise our important standards. Kelly and Sue’s abundance of experience will prove pivotal in helping the Council and the Standards Board ensure we continue to lead the way in setting the bar for best practice in later life lending. Given the many opportunities that exist in the market to deliver value to customers, the timing for this recruitment could not be better.”

Kelly Melville-Kelly (pictured right) said: “Working with the Council and its members to better support consumers will be a key focus of mine in the months ahead. I’m pleased to join the Council at such an exciting time of growth at the organisation and look forward to working with various committees to implement key initiatives going forward.”

Sue Read said: “Having been active in the equity release space for over 20 years, I am excited to come on board at this vital time to further reinforce the industry’s rigorous consumer protections. I look forward to working with the team to add value to the Council’s members and to the end customer.”

Summary – link to full report appears below

Equity release activity makes a steady return in Q3 with 10,351 new plans agreed

• The number of new equity release plans agreed (10,351) increased by 41% from the previous quarter as national lockdown conditions were eased.
• The number remained 9% down year-on-year (from 11,419 in Q3 2019) and it was the second slowest quarter since Q1 2018 (discounting Q2 2020).
• There was a gradual increase in new customer activity during the quarter: July saw 3,147 new plans agreed, followed by 3,228 in August and 3,976 in September.
• 6,697 customers returned during Q3 to take extra drawdowns from their agreed reserves – up 19% from 5,608 in the previous quarter but 30% below the 9,605 seen this time last year.
• £963m of property wealth was unlocked in total during Q3 2020 by new or returning customers, up by 38% from Q2, but down 3% from Q3 2019.
• The climb back towards pre-Covid levels of activity was influenced by an extended pipeline and delayed cases from earlier in the year; new plans agreed in the six months from April to September remained 20% below the same period in 2019.

David Burrowes, Chairman of the Equity Release Council, comments:

“These figures show a steady return to something closer to normal activity over the summer, after the
market weathered the initial impact of Covid-19. With the country experiencing a break from lockdown,
the pick-up was helped by a mix of new enquiries and delayed cases from earlier in the year.

“Equity release is a carefully considered choice, and this year’s unprecedented events make it more
important than ever for people to weigh up their decisions through regulated financial advice,
independent legal advice and conversations with those closest to them.

“Despite the uncertain climate, the market has adjusted well to the challenges of operating safely in a
pandemic. Desktop property valuations have been used selectively, solicitors have taken extra steps to
maintain consumer protections when advising remotely, and product pricing has remained competitive.

“Looking ahead, the key market drivers remain in place: people are living longer and retirement finances
are increasingly squeezed as generous final salary pensions edge further to extinction. Many older
households are already facing a situation where their expenses outweigh their disposable income,
which makes access to property wealth an important pillar to support later life living standards.”

To read the full report CLICK HERE

January 2020 saw average equity release rates drop to record low of 4.48% as product options surpassed 300, according to the 2020 Spring Market Report.

Other key findings include:

• Average equity release rates fell to record low of 4.48% in the second half of 2019, while two out of five products have rates lower than 4%
• Increasing choice of products offering interest-serviced options, partial repayment flexibilities and downsizing protection
• Wider later life market expands as total sales of all mortgage products to customers aged 56+ rose by 25,212 between H1 2015 and H1 2019
• Over-55s account for 75% of UK population growth, projected to increase by 3.7m by 2030
• 63% of new customers opted for drawdown lifetime mortgage products – taking smaller amounts up-front than lump-sum products
• Older homeowners are continuing to recognise the utility of property wealth, as £1.81bn was unlocked in H2 2019
• 2019 market buoyed by strong competition and reinforced by robust safeguards.

David Burrowes, Chairman of the Equity Release Council said: “Hopes that the UK would leave behind the political and economic uncertainty of 2019 have been rapidly overtaken in recent weeks by the national and global response to the coronavirus outbreak.

“Reflecting on 2019, the equity release market remained robust, as for a second year running older homeowners unlocked nearly £4bn of property wealth. While uncertainty becomes the norm, property wealth will inevitably continue to play a role over the months and years to come, to help meet the wide-ranging needs of the UK’s ageing population.

“The increasing diversity of firms in the market reflects the wide range of consumer needs which property wealth is helping to address. It is also a sign of the greater frequency with which the option of releasing equity is coming up in retirement planning conversations.

“Equity release is a long-term commitment that can only be made after careful consideration, regulated financial advice and independent legal advice. Strong consumer safeguards will continue to ensure equity release is chosen for the right reasons, with applications vetted prudently and carefully by weighing up both short- and long-term needs”

To read the full press notice click here.

To download the report itself click here.

EXPECTATION VERSUS REALITY: OLDER HOMEOWNERS FACE £17,984 RETIREMENT INCOME SHORTFALL

• The retirement income people expect to need is more than double today’s average, with Yorkshire and the Humber home to the biggest reality gap (£27,723)
• Multiple pressures, from rising living costs to mortgage commitments, are not only stifling savings, but eroding pension pots as one in six (16%) plan to draw on their pension savings early
• Property wealth holds untapped potential, equivalent to 12 years of state pension payments for the average homeowner – but few are prompted to consider it
• The Equity Release Council and Key call on government and industry to break down the silos that create tunnel vision when it comes to retirement planning
• To read the full report click here: ERC & Key_Pension Property Paradox Report

Older homeowners are anticipating they’ll need an annual retirement income of £35,1961- a sum 16% higher than the average income of a full time UK employee and more than double today’s average of £17,212 pension income. This ambitious expectation is leaving a potential shortfall of £17,984 a year.

A new report published today by the Equity Release Council and Key – The pension / property paradox: moving beyond tunnel vision in retirement planning – shows that pension pressures are set to rise as many people access their savings early while generous final salary pensions are expected to be extinct for most people by 2050.

The challenges of rising living costs (30%), prioritising mortgage repayments over pension savings (24%) supporting financial dependents (22%) and earning less money so unable to afford to save more (24%) are all cited as reasons why homeowners over-55 are unable to increase their pensions savings.

Not only are these factors impacting on pension contributions, but they are prompting the early erosion of savings pots, as one in six (16%) homeowners aged 55+ who are yet to retire have, or plan to, dip into their pension savings early.

This reality gap among homeowners aged 55+ comes at a time when pension income growth has stalled, increasing by just £7 a week over the last decade, and savings pressures are escalating across the UK, which is already home to western Europe’s largest increase in pensioner poverty since 1986.

Yorkshire and the Humber is home to the greatest reality gap, with older homeowners in this region likely to see a shortfall of £27,723 between what they anticipate needing and the retirement income they’re likely to achieve. Followed by London (£19,856) and the South West (£19,531).

Mortgages and pensions compete to be top priority

Valued at a combined £11.21 trillion, private pensions and property account for more than three quarters (77%)7 of household wealth. They are the two biggest sources of wealth in the UK, the fastest growing and consistently ranked top in public perceptions as the safest ways to save for retirement.

The report shows paying off a mortgage often competes with retirement savings to be older homeowners’ biggest financial priority – stifling pension contributions and increasing the likelihood of people being “asset-rich, cash-poor” in later life.

Just over one in three (31%) homeowners who have increased their pension savings in the last year have been able to do so as they’re no longer paying off their mortgage. Among those who still have a mortgage, almost half (44%) report that paying off their mortgage has, or is likely to, limit their pension savings potential.

Property wealth in the blind spot despite its potential

Property wealth holds significant untapped potential to help close the retirement income gap. The average homeowner in England and Wales could access £88,290 from their property via a typical equity release plan – equivalent to over a decade of state pension payments.

Yet despite this appetite, bricks and mortar remain in the blind spot when it comes to retirement planning. Just one in five (19%) older homeowners who have sought information, guidance or advice on later life finances were prompted to consider accessing property wealth as an option – highlighting a disconnect between the choices they are presented with and the wealth or assets at their disposal.

David Burrowes, Chairman of the Equity Release Council, comments: “With the UK’s population ageing rapidly, the scale of this issue is only set to become greater. An increasing number of consumers must make their pensions savings last over longer retirements with property wealth fast emerging as a viable solution to help meet this funding challenge.

“Our report emphasises the pension pressures faced by many across the UK and calls for property wealth to be better considered and integrated into the advice process. A single-product solution to retirement planning is no longer fit for purpose. We must break down the silos that create tunnel vision when it comes to later life financial planning.”

Will Hale, Chief Executive Officer of Key, comments: “Today’s report shines an interesting spotlight on an issue that the vast majority of us will face at some point in our lives. How do we juggle our financial responsibilities as we age in such a way that allows us to increase our pension contributions and achieve goals such as paying off our mortgages? Sadly, there is no simple answer to this particular question – especially with the slow death of final salary schemes but an increase in longevity.

“However, to me this report suggests that we should be asking an entirely different question -how can we use all our assets to help us achieve our wants and needs in later life? While even the boost provided by using residential property, investment and savings as well as pensions might not help everyone achieve a retirement income of over £35,000 – which is higher than the average UK salary – it will certainly help. “Indeed, taking a holistic approach to retirement planning and ensuring access to good specialist advice will mean that more people are able to enjoy a comfortable retirement.”

To overcome tunnel vision in retirement planning, the Equity Release Council and Key are calling for:

• The Money and Pensions Service (MaPS) should signpost retirees to consider home finance options and later life lending products as part of a joined-up retirement planning approach – promoted via a public information campaign. This should include tailored guidance based on people’s life experiences and circumstances – recognising the impact of events such as divorce, separation and caring responsibilities on individuals’ retirement prospects.
• The Department for Work and Pensions should build on the Pensions Dashboard initiative to facilitate a broader retirement dashboard that supports a holistic view of all assets and options.
• The Financial Conduct Authority, should continue to see how best to break down siloes within the regulatory framework, which create an increasingly artificial separation between specialist forms of advice and contribute to consumer safeguards in different areas of the later life market. The industry needs to lead the way on this by building stronger referral pathways to break down these siloes. This will ensure consumers consider the full range of available products based on their current and future needs, whatever their entry point to retirement planning conversations.
• The adviser community needs to come together to aid learning and the passing on of experience to meet growing consumer demand. This includes working with regulators and qualifications bodies to embed and promote minimum standards of knowledge across the entire retirement income and later life lending space.
• Government should appoint a Minister for the Elderly, who can ensure broader social and financial issues are recognised and co-ordinated across all Government departments.
• A cross-party later life commission should be established to help meet the long-term needs of people in later life, including via the potential uses of property wealth and balancing intergenerational needs.

To read the full report click here: ERC & Key_Pension Property Paradox Report

Registration is open for next year’s inaugural Equity Release Summit which organisers anticipate will be one of the landmark events in the industry’s calendar.

Speaker announcements will follow in the coming days and weeks, but in the meantime delegates can register on the Summit’s dedicated website at www.equityreleasesummit.com.

The one-day Summit takes place on Thursday March 12 in Church House Westminster, London, and is being organised by the Equity Release Council. The main sponsor for the event is Key Group.

In addition to keynote addresses by senior politicians and sector leaders, the Summit will feature core plenary sessions focusing on broad issues of interest to Council members and the wider sector.

Jim Boyd, Chief Executive Officer of the Equity Release Council, said: “Equity Release has come of age as a mainstream later life lending product.

“To reflect the increasing importance of Equity Release in meeting the needs of the ageing population, we are organising a landmark event targeted at market participants and stakeholders, including politicians and journalists.

“It will provide insight and explore the role of housing wealth to supplement pensions, intergenerational fairness and long term care funding.

“We will also be running specific industry-focused breakout sessions to educate and inform advisers and solicitors who practice in this important and growing market.”

Simon Thompson, Group Chief Executive Officer at Key Group, said: “At Key Group, we are committed to working with the industry to develop later life lending in order to help more people finance a better retirement.

“This is why we are delighted to be lead sponsor for the Council’s inaugural Equity Release Summit.

“This prestigious event will look to bring the widest possible group of stakeholders together to consider the issues facing this market and help us explore how we can innovate and educate to better serve our customers.”

The Equity Release Summit is the latest initiative by the Equity Release Council to support its members’ work and promote the benefits that equity release can deliver for consumers.

Throughout 2019 the Council welcomed government and shadow ministers to its events, including a Parliamentary summer reception that attracted more than 170 attendees.

The Council said Summit delegates can expect a similar calibre of speakers but the programme will remain highly relevant for all involved in the equity release sales and advice process.

The Summit is open to both Council members and non-members and early bird rates are available until January 12. It is being managed by the award-winning Rapiergroup.

To discuss sponsorship and/or speaking opportunities contact [email protected] in the first instance.

• Number of over-65s living alone has increased by 15% in the last decade
• Over 4 million over-65s will soon be living in single-person households, outnumbering those aged under-65 for the first time
• Increasing number of people living alone in later life influenced by rising life expectancies and divorce rates
• More than two in five new equity release plans are taken out on a single basis to support retirement finances

The total number of over-65s living alone is on course to outnumber those aged under-65 for the first time on record within the next three years, according to new findings by the Equity Release Council.

Council analysis of official population estimates indicates there will be more than 4 million over-65s living alone by 2020, with this age group making up half of single-person households by 2022 as life expectancies and the rate of divorce in later life increases.

The number of over-65s living alone in the UK has already risen by 15% in the last decade from 3.4 million in 2008 to 3.9 million in 2018. As a result, the percentage of single-person UK households that are aged 65+ has increased from 45% to 48% over the same period.

[Please see PDF below for graph 1: Single-person households in the UK, thousands (forecasts based on 1996-2018 trends)]

While the loss of a partner will account for a substantial proportion of these single person-households, the growing number of over-65s living alone might also be attributed to the rise in divorce among couples in later life.

Since 1999, the average age of divorce has increased by 5.5 years for both men (46 years old) and women (44 years old). With more over-65s living alone, the Council is witnessing an increase in the number of single equity release plans being taken out by customers to help meet their later life financial goals.

Market data for the first half of 2019, published in the Council’s Autumn 2019 Market Report, showed that single plans accounted for 41% of new drawdown plans agreed and 45% of new lump sum plans. The remainder were taken out by joint borrowers.

[Please see PDF below for graph 2: Proportion of new equity release plans agreed by type of plan, H1 2019]

Equity release enables homeowners aged 55+ to draw a lump sum or regular sums from the value of their home, while remaining in their homes and without having to make monthly repayments.

The market has grown considerably in recent years with £3.94 billion released from bricks and mortar over the course of 2018, fuelled by product innovation and flexibilities such as options to repay early when downsizing to a smaller property; ring-fence a guaranteed minimum inheritance; and make interest or capital repayments to minimise the cost or reduce the loan size over time.

Jim Boyd, Chief Executive Officer of the Equity Release Council, said: “There has been a dramatic increase in the number of single households lived in by pensioners.

“This is increasing as ever longer lives are spent alone in retirement following the death of a partner or where people have chosen not to marry.

“However, the rise of ‘sliver splitters’ in now becoming a striking feature of ageing-Britain leading to increases in the number of people living alone in later life.

“Living alone can be costly as sole incomes are expected to stretch just as far to cover many of the day-to-day household bills.

“Added to this pressure is the fact that many of the retirees of today are set to face record long retirements as life expectancies increase, putting even greater demand on their pension pots as they’re expected to stretch further.

“In response to these trends, we’re seeing an increasing number of homeowners that live alone turning to equity release to supplement retirement income and help meet both day-to-day and long-term financial priorities.

“Along with financial support, equity release can also bring important social benefits for those living alone. By enabling homeowners to access the wealth tied up in their property without having to move, older homeowners are able to remain in their home and stay in their local communities with their friendship groups and familiar networks.

“The extra income can help towards holidays, visits to family and friends, and pay for additional care, hobbies and services helping to combat the loneliness and isolation which can arise for many in later life.”

Click below to download a PDF of the press release which includes the graphs and further references

OVER-65s WILL MAKE UP HALF OF SINGLE PERSON HOUSEHOLDS BY 2022

The Equity Release Council has signed up its first major property firm after Knight Frank Finance, the financial services arm of global real estate consultancy Knight Frank, launched a UK later life finance team.

The new team will advise on and offer a range of products designed specifically for homeowners over 55-years-old, including equity release options, influenced by the view that high net worth homeowners can also benefit from discussions about the role property wealth can play in later life.

Membership to the Council, the representative trade body for the equity release sector has been growing steadily, boosted by new entrants to the market, Almost all members (84%)1 believe membership is essential due to the credibility it brings, allowing them to play an active role in the industry.

Last month it signed its 1,000th member. The growth of the Council’s membership highlights the changing attitudes towards property and financial planning across the UK, with over half (51%)2 of older homeowners now factoring bricks and mortar into their later life plans.

David Burrowes, Chairman of the Equity Release Council said: “Knight Frank Finance’s expansion into the later life sector, and membership to the Equity Release Council is testament to the growth in popularity of equity release, and the important work the Council does to uphold rigorous standards and consumer protections across the industry.

“As the popularity of equity release grows, so too does the need for qualified advice. The launch of Knight Frank’s Later Life Finance team is therefore a great addition to the equity release adviser landscape and the Council’s membership.”

David Forsdyke of Knight Frank Finance commented: “I have worked closely with the Council for many years and have seen first-hand the positive impact they have on consumer protection and confidence in this market. Membership is, in my opinion, an essential ingredient for any firm involved in equity release.

“We are fully committed to this market and dedicated to providing a best in class service to our diverse range of clients, bringing the needs of high net worth homeowners into the conversation around equity release. Going forward Knight Frank Finance has ambitious plans to build its specialist team of equity release and later life financial experts.”

 Equity Release Council report – Beyond bricks and mortar: the changing role of property in later life financial plans – supported by Key

• As national property wealth passes £4 trillion, older households depend the most on this source of finance: making up 40p in every £1 of over-65s’ wealth and 47p among over-75s
• 51% of homeowners aged 45+ see money invested in property as part of their later life financial plans, with those aged 45-64 most likely to agree
• 44% feel taking out a mortgage or loan to access property wealth in later life is becoming a more common way to manage money, while 40% see it as a “reality” of ageing
• Retirees of tomorrow increasingly plan to use money invested in property to help family members while they are still alive or as a ‘nest egg’ for unexpected expenses
• Report calls for action to meet later life and intergenerational needs – including a Later Life Commission and Minister for the Elderly alongside industry and regulatory efforts

More than half (51%) of homeowners aged 45 and over see money invested in property as part of their financial plans for later life, according to a new report from the Equity Release Council.

“Beyond bricks and mortar: the changing role of property in later life financial plans”– supported by Key, the one of the UK’s leading independent equity release advisers – examines trends in UK property wealth and how it is impacting homeowners’ outlook in later life both in terms of managing their own finances and supporting younger generations.

It shows older homeowners – particularly those aged 45 to 64, the retirees of tomorrow – are reassessing the traditional roles of property in retirement funding and inheritance.

A picture of UK property wealth

The Council’s analysis shows net property wealth has passed £4 trillion – the equivalent to nearly £80,000 for every UK adult, with investment in property exceeding new mortgage debt every year since 2008. Three quarters of the average home is now owned outright, and regular mortgage capital repayments alone have steadily increased from £30bn in 2007 to £50bn in 2018.

Older age groups are not just the biggest owners of property; they also depend the most on its contribution to their overall finances. Bricks and mortar accounts for 40p in every £1 of household wealth for those aged 65+, rising to 47p among the over-75s versus 35p across the nation.

Shifting perceptions of property

The report suggests these shifting trends are driving a change in attitude among the over-45 homeowner population. Many are facing multiple financial challenges as they seek to live longer, healthier lives while balancing their needs with providing support for younger generations. Homeowners aged 45+ see property as the most important contributing factor to their financial comfort in later life (68%), and over half (56%) feel they can benefit from its financial value while they still live there.

The retirees of tomorrow – those aged 45-64 – are less likely than their older counterparts to see property as something to leave behind as an inheritance. Instead, they are more likely to think of it as a multi-purpose financial tool that can support their own financial plans (55%), be used as a nest egg to meet unexpected expenses (49%) or help family members (25%).

Re-evaluating later life lending

More than two fifths (44%) of over-45 homeowners feel taking out a mortgage or loan to access property wealth in later life is becoming a more common way to manage money, while 40% see it as a “reality” of ageing. Only 34% feel they have no need to consider this option either now or in future, including just 30% of those aged 45-64.

While there is significant intent to use – or at the very least consider – residential property as part of later life planning, current activity suggests more needs to be done to encourage people to take proactive steps.

To address this, the Council has called for action spanning consumers and their families, industry, regulators and government, to support financial education, product development, consumer safeguards and policy planning. This includes establishing a cross-party Later Life Commission and a dedicated Minister for the Elderly.

David Burrowes, Chairman of the Equity Release Council said: “The UK’s ageing population and changing retirement landscape means people are increasingly thinking of property as a multi-purpose financial asset – particularly those aged 45 to 64, the retirees of tomorrow. Property is often a person’s single largest asset and makes a significant contribution to homeowners’ personal finances as well as providing a place to live.

“Changing attitudes to property are significant given the financial challenges facing our ageing population as they seek to live longer, healthier lives. Many people have made inadequate provision for their retirement and care needs, while others have younger family to support. Consequently, bricks and mortar have become a vital piece of the retirement funding jigsaw, to benefit people during their lifetime as well as their families.

“Our calls to action are underpinned by the core belief that – while drawing on property is not right for every circumstance and should not distract from encouraging long-term saving – it should be on every homeowner’s checklist to consider in later life, now more than ever. We urge industry and policymakers to evolve their thinking to reflect that of older homeowners to support this emerging demand.”

Will Hale, CEO of Key, said: “For over-65s today, wealth is intrinsically linked to bricks and mortar with 40p in every pound that they own tied up in property. Historically, people have seen their house as a home and potentially as an inheritance to pass on to the next generation but this report clearly highlights that not only is that perception changing but, given the increasing pressures on retirement finances, that it has to change.

“With pension savings failing to keep up with the increase in longevity, the vast majority of people will need to carefully consider how they maximise all their assets in retirement. Whether they conclude they want to use property wealth to fund one-off purchases in later life, a source by which to top-up regular income or to provide a helping hand to the younger generation, ignoring 40% of their net worth just doesn’t make sense.

“This report and its recommendations clearly highlight not only the potential benefits that housing equity can bring to older homeowners, their families and the nation as a whole but the size of the challenge that we are facing.”

To download a copy of the report click here.