Economic influences, higher-rates and consumer apprehension have stunted growth

30 January 2025

Over the past year, various contributing factors have led to a change in consumer behaviour across the sector. As well as macroeconomic factors, the equity release sector faced additional challenges due to consumer apprehensions. This impacted the market and caused a threat to people’s financial goals. Whilst the desire and intention was there, pressures and concerns due to the cost-of-living crisis for example were prolonging people making important financial decisions, or they required financial guidance and advice but were constrained by a lack of general awareness or visibility. For instance, there’s little or no media advertising at the moment, therefore awareness of financial options is low.

However, optimism did return in the second half of last year. Similarly to findings from the Equity Release Council, at Equity Release Group we too have seen an increase in demand during Q4 of 2024. We’ve seen a sharp rise in lead figures, which rose by over 30% in comparison to 2023, as well as an increase in applications, which grew by 16% YoY. Also, smartER, which affords people the freedom to research equity release plans in their own time, without feeling any pressures, saw a 3.5% elevation in sales in comparison to 2023 YoY vs other channels.

Digital developments therefore are certainly continuing to create new opportunities to meet consumer desires, but there’s still a long way to go in terms of product development to ensure we demands in this higher rate environment.

The market for later life planning is diverse, with consumers now having to prioritise immediate expenses as opposed to longer-term goals, therefore usage is shifting. However with accessible, clear and comprehensive information available early on, consumers can feel in control of their situation before gaining the financial advice they need. Accurate, online tools are a necessity within the sector and when product development aligns with this, I believe there will be even more appetite and heightened growth.

Mark Gregory, Founder & CEO at Equity Release Group