"The challenges of a 21st century retirement mean that, while unlocking property wealth is not suitable for every circumstance, it should be on every homeowner’s checklist to consider."
Last year alone saw a 35% annual increase in Council membership among adviser firms from 246 to 332, while the number of solicitor firms rose by 46% from 41 to 60.
2019 brought a record 146 new joiners - including Knight Frank Finance, Openwork and StepChange Financial Solutions – which the Council says reflects the increasing diversity of firms as property wealth takes on a mainstream role in later life financial planning.
The Council also has seen a 77% rise in individual member registrations from 673 in December 2017 to 1,193 today.
From the 1st of January, the Council implemented the biggest evolution of the its Standards since it took on a broader remit in 2012.
The update introduces a principles and outcome-based approach alongside the existing rules to meet consumers’ changing needs in later life. It was informed by a member consultation along with external input from the FCA, HM Treasury and the Money and Pensions Service.
The Council is also working with awarding bodies to evolve industry qualifications and will launch a new competency framework this year for financial and legal advisers and other supporting roles.
The aim is to help meet future demand from older consumers for advice on accessing property wealth via equity release and other products as part of the wider later life financial planning market.
David Burrowes, chairman of the Equity Release Council, commented: “The option of accessing property wealth increasingly registers on people’s radar when planning for later life. The Council’s growing membership means more people can access the highest level of consumer protection for any property-based loan when exploring whether equity release or alternative products can help to meet their needs.
“The UK’s ageing population faces longer life expectancies, intergenerational pressures and more individual responsibility to make financial provisions. The challenges of a 21st century retirement mean that, while unlocking property wealth is not suitable for every circumstance, it should be on every homeowner’s checklist to consider.
“There is more work to be done in the year ahead to build on recent product innovation and maintain standards of consumer protection. The Council will continue to work with policymakers, regulators and industry to promote better understanding of today’s later life lending products and the social benefits they bring².”
