Eight in 10 financial advisers operating in the equity release market are looking to grow their business in the next 12 months, a survey of more than 160 advisers found.
The survey, which was carried out by Pure Research and Smart Money People, revealed that nearly two-thirds of advisers were seeking to invest in marketing, with nearly four in 10 (38%) looking to invest in better partnerships.
Meanwhile, just over one in four (26%) want to invest in technological innovation.
Challenges facing the equity release market
While advisers were keen to invest in growing their business, they were also quick to identify the challenges facing them in the sector.
Some four in 10 (40%) pointed to the current high costs, with just over a third (34%) citing a lack of client understanding and three in 10 (30%) viewing regulatory challenges as an ongoing source of frustration.
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Scott Burman (pictured), head of distribution at Pure Retirement, said: “It’s great to see advisers not only continue to show faith in the sector, but actively look to invest in their business. Additionally, with 54% of brokers expressing that, to grow their business, it helps to have dedicated support representatives from lenders, and 48% saying marketing resources from lenders is much-needed, it underlines the important role that lenders can have in supporting their adviser network in growing their business within the later life lending space.”
Although lending activity declined last year compared to 2023, falling from £2.6bn to £2.3bn, lending grew in the final quarter of 2024 compared to the same period in 2023, which David Burrowes, chair of the Equity Release Council, called “encouraging signs of recovery”.
