The market was worth £946m in 2009 but LaterLiving equity release planner Simon Chalk says this is likely to grow hugely as more people need to unlock value from their homes.
He says: “It will get to the point in the future where people no longer consider their home to be sacrosanct and will have to form part of their retirement planning. IFAs have got to embrace this. If the market was to get to £20bn or £30bn, which is potentially where it could be, we could not cope as we are at the moment.
“My instinct is that when the policy changes come in from the Government, diluted pension and lower savings, I think people will want to release equity from their own homes.”
Equity Advice managing partner Stuart Wilson says: “I suspect that a Government endorsement for equity release is not a million miles away. Once that is done, that in itself will trigger education of the public.
“If you look back, we have got lots of older people increasing in numbers and decreasing in resources but it has yet to increase demand. We need a catalyst and I think this could be it.”