SHIP: Equity release market is adapting

Safe Home Income Plans (SHIP), the trade body for equity release companies, has suggested that the market is adapting as current providers move to fill the void left by those who stopped trading in the last year.

Several of the group's members reported strong growth during 2010, which may indicate sector recovery.

Director general Andrea Rozario stated that demand is being met by those who are still trading, and noted that a former provider - More2Life - has rejoined the market in recent months.

The value of the sector remained relatively stable on the second quarter, with total advances falling by less than 8% to £196.7 million, against £213.4 million during the first three-month period of the year.

Commenting on a recent report into equity release by charity Age UK, the trade body welcomed what it described as a "ringing endorsement" by the over-55s, saying the results showed the oft-ill regarded industry was in fact popular among customers.