Equity release trade body Safe Home Income Plans (SHIP) has revealed that business volumes produced by its members in the second quarter of the year have increased by 14% over volumes in quarter one, reports Mortgage Solutions.
A total £275.7m of equity was released by SHIP members in the second quarter, 14% higher than the £242.7m released in the first quarter.
Andrea Rozario, director general of SHIP, said results underlined the robust health of the equity release sector despite the impact of the credit crunch that was having such a negative effect on the mainstream mortgage market. She explained: “It also serves to highlight the distinctly different forces that drive the equity release market relative to the mainstream market, including the fundamental pressures of the UK’s ageing population, falling levels of pensions contributions and the very high levels of personal wealth held in housing equity.”
SHIP said that in terms of distribution, the intermediary channel continued to dominate, although the percentage of total equity release business carried out relative to the direct channel fell slightly from 74% in the first quarter of 2008 to 71% in the second quarter.