Article | December 2006 | by Duncan Young
Equity Release Outlook - 2007
The overall outlook is good. The entire equity release market will be regulated as of April 2007 when home reversions also come under the jurisdiction of the FSA. There is no denying that this is a positive step for brokers, lenders and consumers. Perhaps because of this, the FSA has made no mention of another mystery shopping exercise in 2007. This will mean that the whole industry – and brokers in particular – will not have to worry about any of the associated negative publicity that arose around these exercises in previous years.
Consolidation will play an important role in the shaping of the industry over the next 12 months, making it stronger and more efficient as a result. Restructuring as a result of mergers and acquisition activity, the flat growth in new business and the departure of some of the smaller players are some of the key drivers.
Overall the equity release market should expand by about 10-15% over the coming year - enough for everyone to have confidence in the future.