Equity release referral market set for growth

Over half (58%) of introducers believe the equity release referral market is set for continuing expansion over the next three to five years, according to new research published by Key Partnerships.

The findings from the equity release referral service arm at Key Group revealed that 8% of introducers are expecting “substantial growth”.

However, the figure of 58% is a drop from the 68% in the first report released in 2019, with Key suggesting that the impact of COVID-19 has tempered the previous optimism of some introducers.

The research, based on responses from more than 500 introducers, found that IFAs are the most confident about growing their referral business, with 9% expecting substantial growth and another 61% forecasting moderate growth.

Key’s research also found that wealth managers are the most confident about the effect of the pandemic on their business, with 70% expecting business to pick up compared to 44% of introducers as a whole, and 55% of IFAs.

The research showed that mortgage brokers tended to be among the hardest hit by the pandemic – with 30% believing the market will get tougher for them in 2021, compared with 23% of introducers as a whole.

Key Partnerships business development director, Jason Ruse, commented: “With introducers predicting big things for the equity release market over the next three to five years, the potential for the sector is very clear.

“That said, it is important for organisations to make the right choice around what advice they wish to provide and what advice they feel might be better provided by a firm that specialises in the market.

“Fundamentally, it is about finding the right fit for your business and your clients. The importance of specialist advice cannot be overlooked, and we welcome more referral partners into the market.”

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