Equity release demand 'remains strong'

Demand for equity release products has remained strong in spite of the recession, new figures suggest.

Although the market has felt some impact from the loss of providers, activity has nevertheless remained "buoyant", according to Safe Home Income Plans (SHIP).

Drawdown mortgages continued to be the most popular equity release product in the first quarter of the year, with a 55 per cent market share.

The size of the equity release market remained fairly stable, according to SHIP, with total market advances falling by just eight per cent in the three-month period compared with the final quarter of 2009.

"Despite the withdrawal of some big providers from the market, the equity release market remains robust," said SHIP director general Andrea Rozario.

"SHIP is confident that over the course of the year the market will remain strong," she added.

Ms Rozario last week suggested that it would be "ridiculous" for individuals not to at least consider the option of equity release as part of their financial planning for retirement.

Ashall Glover Financial Services are equity release specialists