The Current State of Equity Release
It is wildly reported across several finance publications, including ours, the price of the property will continue to fall, but what caught our attention is the equity release market has contrasting views. Some say it will shrink, whilst others predict growth in 2023. 
Whether on the fence or lending towards shrink or growth, we do not foresee the end of equity release.
To illustrate that point, according to a survey by Canada Life, 40% of advisers predict a contraction in the sector, while 43% anticipate growth in the business.
Advisers have differing opinions on whether the equity release market will experience the same activity level as before the final quarter of 2022. With that in mind, we spoke with our very own Richard Turner, a professional whole of market Mortgage Adviser with extensive experience in the equity release market, on his take on the equity release debate. 
Turner says, “Last year’s last three months saw a lot of changes in lifetime mortgage products. The interest rates increased significantly, and the amount you could borrow decreased. Some products were even taken away, and some lenders stopped offering these mortgages.
“In 2023, the interest rates have decreased and stabilised, like regular mortgages, and lenders have started offering these mortgages again. However, the product range will take some time to return to where it was in 2022. Lifetime mortgages are still a good option with flexible features, but they might take some time to get used to due to the current cost and availability.”
Turner’s views on equity release bring us nicely into this segway. Alice Watson, head of marketing communications at Canada Life UK, said: “It’s clear that the current economic climate isn’t helping consumer confidence, and that is being felt across the housing market. As a result, advisers are predicting a return to previous equity release transaction levels later this year or into 2024, with a shift to younger borrowers with smaller loan values.
“The equity release market has weathered previous economic headwinds and provided financial resilience to households nationwide. With the right advice, it can offer flexible ways to meet individual customer needs and will undoubtedly continue to adapt.”
You can also read Alice Watson from Canada Life UK’s response to Great Expectations Report
Our final assessment is that the equity release market is still being determined, and it remains to be seen how it will develop over the coming years. We can only hope that whatever happens, homeowners can continue to make use of equity releases for whatever reason they deem essential to their needs.
Ensuring long-term stability in the market requires skilful management of both product offerings and reputation. By carefully navigating these aspects, businesses can foster a sustainable and resilient market presence for many years to come. However, the current outlook remains uncertain, and we must patiently wait for further developments to unfold.
Strategic Product Management: Developing and maintaining a strong product portfolio is key to market success. Businesses must continuously assess market demands, identify customer needs, and innovate to offer solutions that resonate with their target audience. Strategic product management involves refining existing offerings, launching new products, and optimizing the product mix to achieve a competitive edge. Companies can enhance their market position and drive long-term stability by consistently delivering value to customers and staying ahead of industry trends.
Nurturing a Positive Reputation: Building and safeguarding a favourable reputation is crucial for sustained success. A positive reputation instils confidence among customers, investors, and stakeholders, enhancing brand loyalty and sustainable growth. Businesses should focus on providing exceptional customer experiences, maintaining ethical practices, and engaging in transparent communication. Earning the market’s trust fosters enduring relationships and fortifies the organization against potential challenges.
Adaptability in Uncertain Times: While strategic management is essential, the market landscape can be unpredictable. Economic fluctuations, technological advancements, regulatory changes, and unforeseen events can impact business dynamics. To maintain stability, companies must remain agile and adaptable. This involves having contingency plans, diversifying revenue streams, and proactively addressing emerging challenges. Organizations that can navigate uncertainty with resilience are better equipped to thrive in an ever-evolving market.
Monitoring Market Developments: Staying informed about market trends and developments is crucial for making well-informed decisions. Business leaders should continuously assess industry shifts, consumer preferences, and competitive forces. Market intelligence helps identify opportunities and potential risks, allowing for proactive measures and strategic positioning.
In the meantime, customers can reliably contact Richard Turner, Connect Lifetime equity release experts, for immediate advice.
