How the Budget will affect the equity release market – Adam Oldfield, MD, Phoebus

30 October 2024

Ahead of today's Budget, please find below a comment from Phoebus MD Adam Oldfield, on how the Budget might affect the equity release market.

Adam Oldfield, managing director, Phoebus Software, said: “The Budget is set to signal more good news for the equity release market. It could potentially benefit from the likely changes to inheritance and capital gains taxes. There is a strong feeling that people will start to reconsider their position post-Budget and potentially utilise their equity for family in an attempt to reduce their exposure. Otherwise, families may face paying higher inheritance tax bills on property amongst other things - so many estates may want to mitigate their liabilities by releasing equity in their homes.

“Consumer confidence in the equity release market continues to increase. Last week’s figures from the Equity Release Council showed a successive increase in the number of new equity release plans and total lending last quarter. It saw an 8% rise, which is extremely encouraging for the sector.

“We should expect continuing steady growth in equity release markets if the Reeves Budget inspires positive consumer sentiment and interest rates remain stable.”