Speaking yesterday at the launch of a discussion paper by Ship and Ernst and Young, Hollis said equity release should be a core part of retirement planning.
Hollis said: “It is rare for the public and private interests to coincide as they do with equity release. Equity release meets a truly urgent social need in the most decent way possible- Government ministers should be singing its praises, and making it a core part of retirement funding planning.
“This report is a crucial first step in bringing equity release into the public policy arena. I recommend that equity release should develop partnerships with local government, and specialists in other areas to develop Ship ‘kitemarked’ products.
“Finally, alongside a formal review of the industry, a government department should take responsibility for equity release and make sure that it is a major player at the table. Equity release must be transformed from a distress option, and taken mainstream.”
Ship director general Andrea Rozario says: “We welcome Baroness Hollis’ calls for the Government to seriously consider the use of housing equity as a major source for retirement funding in the UK.
“The recent Social Care Green Paper failed to recognise the £700 billion in unmortgaged housing wealth currently held by the over 65’s. Government backed equity release could significantly ease the pressure on the state to subsidise retirement funding, whilst allowing many pensioners the financial freedom to enjoy their retirement.”