PR & Media
A busy start to the year saw The Council’s Q4 2017 lending figures released to media in January, showing a record £3bn unlocked from people’s homes in 2017. The story has been covered 98 times to date, with notable coverage in the Daily Telegraph, Sunday Times and The Times as well as key trade publications.
The follow-up Spring 2018 Market Report was distributed to media in March and highlighted how equity release withdrawals are gaining ground on flexible pension payments. The report has achieved 23 pieces of coverage so far, including in the Daily Express, Daily Mail and across priority trade titles.
A high-profile broadcast interview was secured for David Burrowes who appeared as a guest on BBC Radio 2 Money Box Live for an equity release consumer phone-in. In addition, a background briefing was arranged with the BBC Radio 4 Today programme. After liaising with the team behind a BBC consumer series ‘Holding Back The Years’ throughout Q4 2017, their equity release segment was aired on BBC 1, highlighting The Council as a source of standards and information for consumers, with a positive case study arranged to talk about the benefits of passing wealth to younger generations via equity release.
David Burrowes continues to build media relationships as chairman of The Council, meeting with The Daily Telegraph, The Daily Mail and The Guardian in Q1 with further introductory meetings planned for the next few months, including with Mortgage Solutions. David was profiled at length in Mortgage Introducer and an op-ed was published in Mortgage Solutions, looking at how equity release can play a greater role in the government’s search for sustainable solutions to social care funding.
The Council having taken input from member released a media statement on The Council’s view on the FCA’s direction of travel to introduce retirement interest-only mortgages for older homeowners. The Council also issued comments on the DWP Pensioners Income Series and the ONS Wealth in Great Britain study – which were both covered in the Daily Express. Media responses were also given on policy developments such as the Communities and Local Government Select Committee’s Housing for Older People report. In addition, The Council has provided expert comment on request for the Daily Telegraph, FT Adviser, Mortgage Strategy and Saga Magazine among others.
Public Affairs
Social care
The Council met the Special Adviser to the Chancellor at the beginning of March to discuss how equity release can help to fund social care.
In a similar vein, the Council also met Clive Betts MP, Chair of the Housing, Communities and Local Government Committee at the end of February to discuss how equity release could help meet care needs, to raise the importance of advice and how the Council would like to see clear reference to equity release in the materials of the forthcoming Single Financial Guidance Body.
The [Housing,] Communities and Local Government Committee’s final report into housing for older people concluded that “Equity release and re-mortgaging are possible routes for older owner occupiers to fund repairs or adaptations to their homes” [para 39].
The report also recommended the new Single Financial Guidance Body was “responsible for providing specialist advice tailored to the financial circumstances of older people. It should signpost older people to mortgage brokers, banks and building societies who can offer advice on mortgages and equity release, shared ownership and shared equity, and on re-investing the proceeds of sales.” [recommendation 2].
Later this month [April], Council Chairman David Burrowes will be participating in a roundtable on care and support reform with the Economic Secretary to the Treasury and Minister of State for Care.
Solvency II
In March, the Council met with the Economic Secretary to the Treasury to underline the economic and social benefits of equity release and to raise the importance of pragmatic and proportionate local application of laws and regulation. The Council continues to proactively engage with the Prudential Regulation Authority.
The publication of the House of Lords’ EU Financial Affairs Sub-Committee’s report https://publications.parliament.uk/pa/ld201719/ldselect/ldeucom/66/6602.htm
into the future of financial regulation and supervision following Brexit referenced the Council’s concerns on the impact of the Solvency II regime, following The Council’s submission of written evidence to the inquiry.
The report recommended that “Government and regulators should consider whether Solvency II requirements need to be updated in order to reflect the specificities of the UK insurance market, within the bounds of whatever agreement is reached with the EU on future market access.” [Conclusion, para 25.]
Single Financial Guidance Body
The Council has continued to engage with the Financial Guidance and Claims Bill as it progresses through the House of Commons. We circulated a briefing to interested and supportive MPs ahead of the Bill’s second reading in January; and suggested an amendment to the Bill’s Public Bill Committee Members which would require the Single Financial Guidance Body to offer financial guidance on the use of housing wealth during retirement.
Mental Capacity
Head of Public Affairs, Sean Smith represented the Council at the National Mental Capacity Action Day in March, with speakers including Forum Chair Baroness Finlay, who spoke at the Great Retirement Money Debate in summer 2017 and Caroline Dineage MP, Minister of State for Care.
Lending into retirement
David Burrowes participated in the Home Finance Forum hosted by John Glen MP, Economic Secretary to the Treasury, in February 2018. Part of the agenda was dedicated to discussion on lending into retirement and how the market is innovating to support older borrowers.
Leasehold Reform
The Council continues to actively engage with the Ministry of Housing, Communities and Local Government on its proposals for reform of the leasehold market. MHCLG has not defined the leases which will be covered by the proposed legislation, but has stated it “will consider further if there are any particular cases where leasehold houses can be justified.” [paragraph 40.] The Council is currently seeking a legislative exemption to protect the home reversion market.
