In recent months, despite some positive signs we have seen a number of players exiting the equity release market. Is this a sign of things to come for the industry as a whole? Well, according to the latest report by Hodge Lifetime around 80% of equity advisers do not think so, and are confident about the future of the industry. This is despite the new retail distribution review recommendations, which could dramatically alter the dynamics within the industry that are due to come in from 2012.

The report suggests that a mere 2% of the adviser population felt that the RDR would have a negative impact on sales within the industry while the vast majority of respondents (over 60%) felt that it would not have any impact on sales. Interestingly, around 10% of advisers suggested that the new regulations would have a positive effect on sales.

There certainly seemed to be an air of positivity about the current and future state of the marketplace. For instance, many advisers reported an increase in equity release applications over the last couple of months. Furthermore, there seems to be growing evidence that equity release is being utilised as a debt consolidation tool, rather than for lifestyle purposes. In the future, it looks likely that equity release will become a popular choice for a host of reasons, which include retirement planning and alternative investments, alongside the aforementioned reasons.

So it would seem that equity release could well be around and flourishing in years to come. It is apparent that although a number of companies have turned the page on equity release for the moment, they have in no means closed the chapter. Rather a ‘wait and see’ approach is being adopted by many financial institutions until clearer skies appear.