Equity release continues to grow

Posted: 27 Oct 2006 10:38:12 GMT

The number of UK pensioners using equity release to tap the built-up value of their homes has continued to rise says industry group Safe Home Income Plans (Ship).

The number of UK pensioners using equity release to tap the built-up value of their homes has continued to rise says industry group Safe Home Income Plans (Ship).

Around £295 million was released from property value over the third quarter alone, significantly up on earlier this year and above the same period of 2005.

"The latest figures show how the equity release market continues to increase in popularity," said Ship chief executive Jon King.

"The continued popularity of flexible drawdown products has resulted in a healthy rise in the number of cases.

"If the number of new cases continues to grow at this rate we could be set for a record year for new business."

Home reversion plans, which allow homeowners to sell part or all of their homes to a third party but continue to live in it until they move or pass away, has proved particularly popular, with increases of £18.2 million over the year.

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