A recent survey by Hodge Lifetime suggests that IFAs are still confident about equity release performance despite an increasing number of lenders pulling out of the market. In a strong rally, 83% of those surveyed said that withdrawing lenders has not affected their confidence in the product.

The advisers do share a number of concerns for the industry however, one of the most popular being the negative reputation that the industry has and the portrayal of the industry in the media. It is easy to understand how this type of product could be an easy target for the media as one’s home, especially in Britain, is an extremely emotive issue. However, around 20% of advisers felt that the best way to improve growth in the industry is through increased media coverage. This certainly indicates that in the case of equity release the role of media can be a double-edged sword.

The survey also found that 58% of advisers felt that there would be marginal price increases in the next three months, which is actually down from 78% in the last survey. Over the long-term, many are optimistic that a number of product innovations could help to reduce the overall costs.

Interestingly, the survey found that a significant proportion of advisers are looking to increase their own marketing of equity release products. For example, 30% suggested that they intend to increase the number of social and networking events that they attend with solicitors and mortgage advisers. On the other hand, 17% of advisers are going to ramp up their direct marketing in this area.

All in all, the positivity that currently reigns among this segment is encouraging and certainly a sign that equity release is here to stay.