Speciality despite popularity: capitalising on the equity release market

House prices were rising, mortgages were incredibly easy to come buy, rents were on the up - what could possibly go wrong? Fast forward five years or so and one would imagine the vast majority of those investors were wishing they had paid a little bit more attention to the warnings of Vince Cable that a downturn was on the way.

Yes, buy-to-let was hit hard by the credit crunch - not least because a lot of those people getting involved in it were inexperienced and, perhaps, a little careless.

It’s a fact that whenever something witnesses substantial growth there are going to be plenty of people who want a slice of the action, so to speak. And in some sectors this can be risky.

Take the current situation in the equity release market, for example. The incredible growth the sector has witnessed of late means there's a risk of inexperienced firms ‘having a go’ at it.

This is not necessarily a bad thing. As most commentators will attest, the current economic climate, particularly for older people, suggests there’s little chance of the growth in equity release slowing down. As such, there will be plenty of business to go around.

However, the problem with dipping in and out of something is that you probably aren’t giving it the commitment it deserves.

Equity release is a specialist, niche area - despite its surge in popularity. Indeed, Equilaw only exists because we recognised the need for a specialist legal service in this area - one which acknowledges the additional challenges this sector presents compared with standard property law.

If advisers and lenders are looking to capitalise on the market (and in many ways they’d be foolish not to) I hope they do so with the dedication and effort it requires. Homeowners and borrowers need expertise and reassurance.