Dean Mirfin, business development director at Key Retirement Solutions, expressed his concerns that intermediaries weren’t taking advantage of the strength and potential of the market.
He said: “According to recent Safe Home Income Plans (SHIP) figures the number of cases is down 3 per cent in contrast to direct business where they have risen by 3 per cent. The value of lending on intermediary business has also dropped 1 per cent while direct business has risen by 3 per cent in value. We are still seeing growth but the drop in the broker market is the biggest concern.
“I believe the future will produce a number of partnerships between broker firms and equity release specialists via introducer agreements. Growth in the market will continue and opportunities are there for intermediaries directly or indirectly,” added Mirfin.
Simon Little, product and marketing manager at GE Life, commented: “Education is the key. It’s imperative that we, as an industry, raise the perception of the market and ensure that both advisers and providers take a responsible approach to equity release.”
The Actuaries Profession recently predicted the equity release market could be growing by £5 billion a year by 2010 but figures rel-eased by the Council of Mortgage Lenders reported that the sector increased at its weakest rate for two years in the first half of 2005.
Research from Key Retirement Solutions has reported 41 per cent of UK customers believe the government should be responsible for ensuring people have good pension provision to help them enjoy a comfortable retirement. However, the reality is less than one in five, 17 per cent, of consumers actually trust the government to help them make sufficient arrangements for retirement.
