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29 July 2010

Bridgewater Equity Release, the home reversion specialist, has today (29th July 2010) revealed the results of its first monthly adviser survey with advisers positive about the outlook for the equity release market for the rest of 2010 but concerned that measures to educate consumers about the sector are not hitting their target. Bridgewater asked advisers what they believe will happen to activity in the equity release market over the next six months. The majority of respondents (60%) believe activity will either ‘increase’ or ‘increase a lot’ throughout the rest of 2010 while most other advisers expect activity to ‘stay the same’. In answering the question, ‘What do you believe would be the single biggest benefit to the equity release market in the next six months?’, 54.5% of advisers would like to see ‘wider consumer education on the benefits of equity release’. 33.3% of respondents were hoping to witness the opening up of the funding markets in order to allow new providers to enter the market and increase the business appetite of those already active in the sector. Not so popular options to benefit the equity release sector included the introduction of ‘a Government-sponsored kitemark range of equity release products’ chosen by 6.1% of advisers and ‘an increase in specialist equity release adviser numbers’ highlighted by just 3%. Each month Bridgewater are now asking recipients of its intermediary ‘Release’ newsletter a series of questions relating to the equity release sector. The newsletter also contains advice, information and support for advisers on a variety of equity release advisory topics. Advisers wishing to receive the Bridgewater newsletter can subscribe at: http://subscribe-socratesint.bixbite.co.uk/bridgewater/ Peter Welch, Head of Sales and Distribution at Bridgewater Equity Release, commented: “Perhaps unsurprisingly equity release advisers seem positive about the potential for increased market activity over the next six months. The big challenge now of course is what the intermediary market can do to help deliver the increased activity it wants to see. It is interesting that most advisers want to see both greater consumer education about the benefits of equity release and an opening up of the funding markets. Looking at these two options, it should be clear to all advisers which option they can help deliver; the funding markets are beyond their control however consumer education is something all equity release stakeholders should take responsibility for and, given the underlying economic and political factors that should influence an increase in demand for equity release, now is certainly the time to put in place a programme and strategy to inform consumers about the solution that equity release products can provide. “Market activity and greater consumer knowledge about equity release are not going to magically increase on their own. It is wrong to assume or believe that it is up to someone else to deliver in this area – we all have a responsibility and given specialist advisers are on the front-line dealing with consumers, it makes sense for them to embrace the role of educating the public alongside the delivery of advice. Bridgewater will continue to offer support to advisers in this area as it is obvious that only through a collective approach across the entire sector will we fulfil these stated ambitions for an improved equity release marketplace.” For more information on Bridgewater Equity Release, visit: www.bridgewaterequityrelease.co.uk ENDS

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