The overwhelming majority of respondents to the Council’s latest member survey have backed the introduction of the Council’s fifth product standard.
Some 93% of respondents agree or strongly agree that introducing the standard, which guarantees consumers can make penalty-free repayments, was a positive move.
Five percent of respondents to the survey, which goes to all members including solicitor firms and those that supply back-office services, were neutral on the standards and less than 2% were negative.
The fifth product standard was introduced in March. The other four standards include a no negative equity guarantee, fixed or capped interest, secure tenure and the right to move properties.
The standards are widely credited with helping to drive growth as well as improve and safeguard the sector’s increasingly constructive and positive reputation.
The member survey took place last month and was supported by Standard Life Home Finance.
Some 75% of respondents said Council membership was essential, a further 17% said it was beneficial whereas 8% said they felt were obliged or expected to hold Council membership.
It also found that:
- 97% strongly agree/agree the Council’s protections and safeguards enable consumers to trust that equity release is safe and reliable.
- 94% strongly agree/agree the Council promotes product/advice safeguards and standards in the industry.
- 91% strongly agree/agree the cost of living crisis is likely to increase customers’ appetites for using use of equity release for gifting and providing financial help to families.
- 43% strongly agree/agree the appetite to fund energy efficient or ‘green’ home improvement projects with equity release has increased in the last year.
Jim Boyd, the Council’s CEO said: “The member survey is one of the most important projects of the year. It’s an opportunity for members to mark our homework and let us know what services they want in the future.
“It was extremely satisfying to see such a strong response to the fifth standards. We recognise that many products offered penalty free payments before it was introduced, but now that guarantee is baked into every single product.
“It means all equity release customers can choose to make voluntary payments that will mitigate the costs of increasing interest payments, which can be a major concern for consumers.”
Respondents were put into a prize draw for a £250 Fortnum & Mason hamper, which was won by Bill Taylor from Gaudium Associates, in Southend, who joined the Council in 2021.
He said: “I wanted to respond to the Council’s survey and having done so was astonished to win the hamper. I consider that it is important to provide feedback as equity release advisers are a broad church with a wide range of experience, business models and requirements.
“A survey reaches out to the members in the most efficient way and the responses are needed to inform the Council, to enable them to understand the thinking of the advisers at the sharp end and to help plan the future agenda for the benefit of both members and the public. As to what I will do with the hamper, I guess it is an excuse to have friends round to share it in the garden in this lovely summer.”
- The views of contributors are not necessarily shared by the Council.
