Equity release activity rises 41% in Q3: ERC

This figure is up by 41% from the previous quarter as national lockdown conditions were eased, however numbers remain down 9% year-on-year from 11,419 in Q3 2019.

6,697 customers returned during Q3 to take extra drawdowns from their agreed reserves – up 19% from 5,608 in the previous quarter but 30% below the 9,605 seen this time last year.

£963m of property wealth was unlocked in total during Q3 2020 by new or returning customers, up by 38% from Q2, but down 3% from Q3 2019.

The Council says the climb back towards pre-Covid levels of activity was influenced by an extended pipeline and delayed cases from earlier in the year; new plans agreed in the six months from April to September remained 20% below the same period in 2019.

David Burrowes, chairman of the Equity Release Council, commented: “These figures show a steady return to something closer to normal activity over the summer, after the market weathered the initial impact of Covid-19. With the country experiencing a break from lockdown, the pick-up was helped by a mix of new enquiries and delayed cases from earlier in the year.

“Equity release is a carefully considered choice, and this year’s unprecedented events make it more important than ever for people to weigh up their decisions through regulated financial advice, independent legal advice and conversations with those closest to them.

“Despite the uncertain climate, the market has adjusted well to the challenges of operating safely in a pandemic. Desktop property valuations have been used selectively, solicitors have taken extra steps to maintain consumer protections when advising remotely, and product pricing has remained competitive.

“Looking ahead, the key market drivers remain in place: people are living longer and retirement finances are increasingly squeezed as generous final salary pensions edge further to extinction. Many older households are already facing a situation where their expenses outweigh their disposable income², which makes access to property wealth an important pillar to support later life living standards.”