INTERNAL NEWS - EPPARG

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

The panel session was chaired by Samantha Seewoosurrun, Head of Secretariat for EPPARG, who introduced the panellists Claudio Pacella, CEO of 65Plus; Sandra Lillienberg, Head of Operations, Enity Bank Group (including 60plusbanken); Thomas Bodereau, CFO and Co-Founder of Arrago; and Robert Majkowski, CEO of Fundusz Hipoteczny Dom SA.

Defining the conditions to unlock market potential

Setting the scene for the discussion, Samantha Seewoosurrun asked Claudio Pacella what conditions were needed to unlock market potential, which would allow equity release to thrive.

Claudio Pacella explained that although equity release is becoming more mainstream in the UK through the media and the news, “taking out equity release mortgages outside the UK remains much harder.” In order to rectify this trend, he stated that EPPARG as a collective has been setting up and abiding by more standards. “The moment we are able to say that our products are basically the same, fulfil the same needs of our clients, as well as fulfilling the needs of the funders, everything becomes much easier.”

He noted that “continental Europe has a large market of seniors that need to be funded”, indicating that the market potential is definitely there, but several countries experienced hurdles in obtaining the adequate regulation or the proper funding.

Taking Italy as an example, notwithstanding a clear huge potential and a complete and proven regulation, the lack of funding has prevented the full development of the market. But to unlock funding and following market volumes, there is still a chicken-and-egg scenario: “you cannot ramp-up a €300 million portfolio without a warehousing facility”, while major investors only have an appetite to look at large and back-books. He noted that Italy is “currently getting the funding”, noting that “closing the funding gap” is difficult for many countries.

He also added that “European origination will help to enhance securitisation. If we are able to start global securitisation portfolios, and also European portfolios, this will help the securitisation industry of ERMs across the globe.”

The role of innovation in driving a positive product and client experience

Sandra Lillienberg highlighted equity release as a strong example of how AI can improve both product and customer experience. Accepting that equity release is often perceived as a complex product, she outlined that AI can provide customers with instant answers to their queries or worries such as: “How much will my loan grow?” or “What will be left to my children?”

Sandra also noted that although “older people are targeted when it comes to financial crime, and AI is a tool that helps to make financial crime”, she believed that there could be a use for AI in protecting customers from this type of crime in the near future.

“When we look at this Global Survey, we can see that Sweden is a very small market compared to the UK and the US, but AI is important for all the markets,” giving the example of adopting digital signatures for promissory notes as one way in which innovation has already been leveraged.

She also emphasised the importance of customer trust in equity release products, and mentioned that 60plusbanken have been addressing the topic of trust through talking about ageism. “It’s in the labour market. It starts from like 45 to 50. It’s more challenging to get a job. Financial inclusion is a huge problem.”

To combat this prevalent ageism, 60plusbanken had launched an award and gala, named Most Promising After 60, as an initiative to “celebrate people over 60 who are still driving innovation, entrepreneurship and inspiring change in society.”

“Our role is not just to provide a financial product, but to support the same mindset, enabling people to stay active, make choices and live the life they want on their own terms,” Sandra concluded.

Harnessing opportunities for growth and sourcing funding

Offering a perspective from France, Thomas Bodereau began by discussing viager transactions. “A viager is a home reversion scheme which is very popular in France, but barely anyone understands how it works,” adding that only around half of people of an age suitable for a lifetime mortgage in France are aware of viagers.

“This has been a business that has not really been scaling for decades, for the simple reason that the funding is over the counter.” He continued: “If you want to sell your home in a viager transaction, you need to find someone to buy it. Obviously, you will understand quickly that it is very difficult to find, at the corner of the street, someone who wants to buy the house of an old lady and wait for her to die to get it.”

This sentiment was what made Arrago “realise very quickly that there was a missing lifetime mortgage market in France a couple of years ago.” Thomas continued: “We had a chance, but the big retail banking groups in France were not so interested in it, for the simple reason that it was so different from what they were doing on a day-to-day basis, which was cash flows of consumer loans, real estate loans, all amortising. And this one was capitalising, so it was completely out of their mindset.”

Having decided to seize this opportunity, they encountered challenges trying to source funding, because they “could not convince French institutions, as they were not really aware of this product, and the institutions don’t like to take risks.” Thomas added that the company was eventually able to secure the first €50 million from French lenders.

These institutions became more supportive after the company moved towards “private equity funds, based in London for this business,” and the flow funding they were subsequently granted led to competition. “Retail banking groups in France are thinking about it, which is already a start.”

Thomas outlined that this competition is consequently leading to growth in the French market. “The potential in France is huge. The real estate market is very steady, so there is not much risk around property.” He stated that Arrago is currently prioritising creating more awareness of the product.

“Overall, if you compare it to Ireland, Sweden or the UK, which are much more mature markets, there should be, at some point, a €1.5 billion to €2.5 billion potential market. And we are paving the way to make it happen,” he concluded.

Striking the right balance on regulation

Sharing his experience as a home equity release provider from Poland, Robert Majkowski first explained how little regulation exists in the Polish equity release market, and “after years of growth in such a strange market, it created crimes at an extremely high level.” Learning from how equity release products were regulated and offered in the UK 18 years ago, Robert’s company Fundusz Hipoteczny Dom SA sought to replicate something similar in Poland, but found that “offering a lifetime mortgage in Poland was, in practice, impossible.”

He stated that only home reversion was possible, but only “on the basis of the Civil Code, without any capital requirements, any know-how requirements, any dedicated sector-specific protection, any checking of the reliability of the provider, or any conduct rules that you have to keep in order to protect the client,” which evidently would have left consumers at risk. “The market started to grow, but this appeared to be a market that was not a professional one,” Robert added.

Having “created a code of conduct based on the SHIP standards in those days,” the company engaged with policymakers and advocated for legislation “which would allow professional services for home reversion and lifetime mortgages.” After a lengthy legislative process, Poland introduced legislation in 2014, but it only regulated lifetime mortgages, leaving home reversion entirely unregulated still.

Robert described a puzzling situation where: “We have very good regulation for lifetime mortgages, which can be offered only by licensed, supervised entities such as banks, and the product does not exist at all. But we have another market where the product is available, but it is completely unregulated.” He therefore emphasised the importance of regulation being balanced, as to prevent the emergence of predicaments such as the one he described.

“It has to be evolution and not revolution. If anyone is making a revolution, there is a high risk of going the wrong way. If there is evolution behind that, usually you can adapt to the situation. We can learn from each other how to adapt, how to develop, and that’s what we are trying to do in Poland,” Robert outlined.

On a positive note, he revealed that “over the past year, we have seen much stronger engagement from the Polish authorities in the process of regulating the whole market, including home reversion,” and warned the same experience could happen in other countries if the correct balance is not found in terms of regulation. “We should talk with decision-makers across Europe about how to support the development of this solution, because simply it will help society across Europe.”

Robert summed up his remarks by highlighting that more pensioners across Europe becoming asset-rich but income-poor is presently leading to higher demand for equity release products, which in itself makes it all the more important for decision-makers to get regulation right.

After Claudio reiterated the importance of European equity release markets collaborating to support securitisation, Samantha Seewoosurrun concluded the panel by thanking the speakers and the audience who had attended EPPARG’s session, and reminded guests to visit their website for further information on the topics discussed.

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size. The global market is expected to reach $56 billion by 2035, as compared to current volumes of $17 billion.

The report, which covers the period 2024/2025, analyses data received from market leaders across 13 countries internationally with established or developing equity release markets, and explores their growth potential. The 13 countries span Europe, North America and Australia, which are among the largest equity release markets in the world.

The survey findings were recently previewed at an EPPARG session on navigating global challenges and opportunities at the Later Life Lending Summit, hosted by the UK Equity Release Council, held in London on 13 May.

The key findings of the survey include the following:

Global equity release markets continue to be resilient, despite challenging market conditions.
Over $17bn of equity is currently released each year for homeowners, among the countries analysed. This is set to rise significantly by 2035, when the global equity release market is expected to reach $56bn in annual releases.
Banks continue to be the most common source of financing for equity release mortgages globally, as in previous years, followed by insurance companies, securitisations and debt.
Lifetime mortgages remain the most common type of equity release, which are available in the majority of countries covered by the survey, followed by home reversion schemes.
Equity release products are typically available to customers from the age of 55 or 60 years old, with a mix of fixed and variable rates offered. There is face-to-face contact with the customer in most countries.
Lump sum products continue to be the most popular product globally, while annuity and drawdown products are available in a number of countries. Combination products, of lump sum and annuity, are starting to emerge in some European countries.
A lack of knowledge and awareness of the product was regarded as the primary barrier to future growth, followed by funding challenges, notably in European countries, and higher interest rates. It was noted that there is a need to educate both consumers and industry professionals about the benefits and options in the market.
In markets where a lack of funding is the bottleneck, there was a call for institutional investors to enter the space.

Commenting on the survey findings, Steve Kyle, Secretary General of EPPARG, said:

“The survey results highlight that the global opportunities for equity release markets remain strong and that it continues to offer significant growth potential.”

“In terms of the drivers of demand, we believe that the challenges of ageing populations in many countries will lead to unsustainable social, economic and intergenerational burdens,. We consider that part of the solution is the development of a safe equity release market. A key role in that development is to ensure there are consumer-focused industry standards, which not only protect consumers, but also contribute to an enabling environment to foster innovation and encourage the involvement of new entrants and socially aware funders and investors.

Enabling elderly homeowners to draw on their housing wealth as an asset unlocks significant economic and social benefits, as borne out by the feedback of our EPPARG members across Europe, whether innovative start-ups or more established businesses. Drawing on their housing wealth allows elderly homeowners to enjoy a more independent and comfortable later life, while the money released is often injected directly into the local economy, helping to create jobs, businesses and wider wealth.

The challenges or barriers for equity release, in Europe and beyond, remain raising awareness, ensuring that property assets are part of the pension planning process and getting the funding models aligned to meet future demand, since a lack of funding remains a major barrier to growth in a number of European countries.

As a global report, for completeness, we understand that drivers for demand and opportunities for growth of equity release are strong in the western world, yet we also see the potential for significant growth in India and across Asia.”

Ben Grainger, Partner at EY, said:

“The global equity release market has the potential to transform the retirements of thousands of people around the world. To unlock the potential, the market needs to deepen and more fully establish cross-border collaboration by sharing funding models and sources, and developing better practice customer standards. The progress that has been made to date is encouraging, and we look forward to working with clients around the world and supporting further growth and expansion.”

Steve Irwin, President of the National Reverse Mortgage Lenders Association (NRMLA) of the USA said:

“Ensuring a safe and financially secure retirement for our aging populations is something governments across the globe are aspiring to through public and private-sector innovation. The monetization of home equity is one solution that continues to gain traction as indicated through this very important report. We look forward to continuing our collaboration with EPPARG to share and explore best practices for monetizing home equity for this critically important endeavor.”

David Burrowes, Chairman of the UK Equity Release Council and EPPARG Board Member, said:

“This survey resonates with the Council’s recently commissioned research by Fairer Finance about how housing wealth can bridge the later life funding gap. At the heart of the recommendations and survey is the need for greater customer awareness, and increasing consumer confidence based on standards and innovation which support good consumer outcomes.”

The survey report is available here.

The report is based on data collected from equity release market players in the following 13 countries: Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Spain, Sweden, the UK and the USA.

As part of the 2025 Later Life Lending Summit, the European Pensions and Property Asset Release Group (EPPARG) held a panel discussion which took a deep dive into the changing equity release landscape at global level, drawing on the findings of its latest global survey.

The Summit, which was hosted by the UK’s Equity Release Council and held on 13 May 2025 at Church House in Westminster, London, heard from leading figures in the equity release sector. The panel discussion, chaired by EPPARG’s Head of Secretariat Samantha Seewoosurrun, included Ben Grainger, leader of EY’s UK Investment Advisory Team; Sandra Lillienberg, Head of Operations at Enity Bank Group from Sweden; Claudio Pacella, CEO of 65Plus from Italy; and Yvonne Ziomecki-Fisher, Chief Customer, Brand and Advice Officer at HomeEquity Bank from Canada.

EPPARG unveiled a preview of its Global Equity Release Roundtable 2025 survey report which was prepared in collaboration with EY. The survey report, which is in its third edition, gathered data from market leaders in 13 countries spanning Europe, North America and Australia.

Key findings of the 2025 survey report

Providing an overview of the report, Ben noted that there had been some “tweaks” following the launch of annuity products in Spain. He added: “We’ve seen an increase in interest paying products in the UK, and we’ve seen variants around early repayment charges. But the products themselves, the volumes and the interest rates, have largely remained stable over the last year.”

“What we’re looking at across most of the jurisdictions involved is how to unlock the potential in those markets. The survey tells us that there should be more equity release, but we’re not seeing it yet,” Ben surmised.

He suggested that the low equity release growth in the countries surveyed could be largely attributed to two main factors: “Either they have suitable distribution channels and access to their customers but the funding isn’t there, or the funding is there, but they are unable to access the customers.” This could arise from “a lack of knowledge or awareness from customers” or “markets having misconceptions about the product which is moving them away from it”, he reflected.

Interest rates were another significant factor, according to the survey. Ben underlined that products may have been more attractive in 2022 where “interest rates started at 2%”, as opposed to rates “now starting at 6% if you’re lucky”, leading the market to contract.

In terms of the survey findings on where the funding was coming from, Ben highlighted the nuances present in the way banking models and insurance models operate in different countries, and how “the regulators treat the capital requirements on banks” which may limit growth.

Equity release funding and demand in Sweden

Sandra Lillienberg stated that, in Sweden, equity release products are provided by banks and the most common form of funding is traditional bank funding, such as deposits from the public and debt capital market funding. She continued: “We are a bank, with the equity release product being one part of our lending portfolio. This is very beneficial from a funding perspective, as banks have a continuous presence in funding markets.” However, Sandra noted that consumers in Sweden don’t require “independent financial advice before taking out an equity release product”, citing the country’s “very high trust in banks”.

The Swedish FSA expects financial institutions to ensure that the customer understands the product.” Sandra explained that Enity Bank Group takes a comprehensive approach to this, ensuring that “every customer receives the necessary information and support throughout this process”.

Sandra also highlighted that the combination of more pensioners seeking to access capital without selling their home, the ageing population, and the rising property values, are resulting in high demand for products in Sweden. She mentioned home improvements and supporting family members as other significant reasons for equity release’s popularity in Sweden.

Call for warehouse funding in Southern Europe

Claudio Pacella stated that in Southern Europe, “we have the market, we have the clients, we have the operations, we have the regulations, but funding is the missing part of our equation. I’m talking about, of course, not the equity funding to start up the operations, but the funding for the portfolio.”

He observed that “the hardest part has been the warehouse funding”, an issue which he described as a “chicken and egg” situation: “You don’t have the funding because you don’t have the portfolio. Should we have a portfolio of EUR 300 million, we would have funding much more easily.”

“It’s easier to get EUR 300 million funding once the volumes have been brought up to speed than EUR 30 million funding in the beginning because you don’t have the track record,” he stated. The solution to combat this is “to create a perfect product, a perfect process, be audited many times by many different institutions, and create the perfect environment to make things happen.” Claudio added: “But in the end, in our experience, maybe the part that needs more focus is the warehouse funding.”

Claudio expressed how difficult it is to coordinate one set of standards across multiple countries when “warehousing across the borders”, before outlining the importance of not only product standards, but also process standards. He stated that industry standards such as the EPPARG 10 “have been very helpful” in avoiding “any reputational issues” for equity release products in Italy.

Brand marketing as a game-changer in Canada

Yvonne Ziomecki-Fisher outlined how “underfunded pensions” are steering Canadians towards equity release products, stating that the “fixed amount of pension that comes in every month doesn’t account for lifetime expenses or if you want to help your kids get into the real estate market. You can’t really fund it from your pension,” adding that people’s savings aren’t going as far as they should be into retirement.

She also highlighted that 90% of Canadians surveyed by HomeEquity Bank want to “age in place”, stating that the opportunities are “basically limitless” with “tremendous potential for business in Canada”.

“Our budget was predominantly focused for many years on just performance marketing and driving originations, but about seven or eight years ago we started investing in brand marketing – having conversations about retirement needs and empowering old Canadians.” Yvonne described brand marketing as a “game-changer” in lifting “all the other activities”.

She explained how HomeEquity Bank has brought on board influencers to enhance its brand marketing and build public trust, including former CBC News anchor Peter Mansbridge and figure skating champion Kurt Browning.

Harnessing the potential of AI in the global industry

Highlighting the omnipresence of technology in the financial services industry as a whole, Samantha Seewoosurrun asked the panellists for their views on how AI is likely to impact upon their practices and operations in the future.

Claudio said that the company in Italy had already been conducting some tests and trials with AI, particularly to speed up the process of reading documents and to determine the origin of the property. However, he hastened to add that AI “should be considered as an assistant, as it’s not yet mature enough to give the perfect answer”.

In terms of its use in Canada, Yvonne mentioned that HomeEquity Bank uses AI in marketing for content creation, in its “contact centre for optimising call flows”, and for faster document ingestion and credit decisions. She underlined: “We’re still testing and learning and we’re also heavily regulated, so we need to make sure that where we implement and go all in, everything meets the standards.”

Finally, Sandra mentioned that Enity Bank Group is currently exploring AI and that she was happy to utilise the tool “in parts of the process”. However, she described personal meetings with customers as “very important”, adding: “I don’t think AI can carry it all.”

After taking questions from the floor and thanking the panel for their expert insights, Samantha Seewoosurrun encouraged audience members to visit EPPARG’s website for more information on its activities.

The European Pensions and Property Asset Release Group, EPPARG, hosted a panel discussion highlighting Global Perspectives and Opportunities at the Equity Release Summit held at Church House in Westminster on 23 May 2024.

The session, chaired by EPPARG’s Head of Secretariat Samantha Seewoosurrun, explored the key findings of the Global Equity Release Roundtable 2023 Survey Report, which was conducted through a collaboration between EPPARG and EY, and which was formally launched on the same day.

An overview of the report was provided by Ben Grainger, Partner at EY, with panel members including EPPARG’s Deputy Secretary General Lennart Grabe and EPPARG members Robert Majkowski from FHD in Poland and Claudio Pacella from 65 Plus – Moltiply Group in Italy.

Key findings from the Global Survey

The purpose of the Global Survey, which was first conducted in 2020, was to gather information from across the 13 participating countries with two key objectives in mind. Introducing the survey, Ben Grainger explained that one goal was to “understand where firms are facing similar challenges in different countries around the world,” and encouraging these countries to work together to overcome these problems. Additionally, the survey was a means of comparing and contrasting the equity release products and “the way firms interact with their customers so they can learn from each other,” he noted.

Turning to potential growth forecasts, Ben underlined that across the 13 countries, new originations currently amounted to slightly less than $20 billion per year, while “the potential predicted by the participants is that the market could grow more than threefold to $60 billion in the next 10 years.”

Ben Grainger

Looking back at the practice not only in the UK, but in other markets, may help to rationalise the survey’s predicted growth of equity release origination volumes, noted Ben. He explained: “We have the same demographic problems in the UK, and equity release is a possible solution. The UK has the same large amount of property wealth held in older populations.”

In fact, the survey estimated that, across the participating countries, $23 trillion of property is held by over 60s. He considered that it didn’t seem hard to get all of those countries to a $2 billion or $3 billion market. Ben concluded that the survey “reiterates that there’s a lot of potential for growth and a lot of potential to support individuals in retirement around the world in this (equity release) market.”

The survey highlights that there is no “one-size-fits-all” solution for the way markets are put together around the world, as well as differences in the funding landscape. It underscores some of the differences “in many countries that operate equity release as a home reversion product, which is a property purchase rather than a loan, versus a lifetime mortgage, which is more popular in the UK,” Ben pointed out.

Ben also noted that there are countries where the interest rate on lifetime mortgages is fixed and in others it is variable, which is another example of differences in the markets. The way equity is released can also vary, “both within home reversions and equity release mortgages across the country, with lump sums tending to be the most popular. But also, a lot of cash is released through drawdown facilities like you see in the UK,” Ben Grainger said.

A lack of funding, Ben explained, commonly limits growth in equity release markets. More specifically, “a lack of suitable funding that allows you to develop the products that customers want.” Interest rates are another factor, he observed, that restricts market growth, but the report found that “customer perception and customer knowledge, and awareness of the product” were the main barrier to growth in markets. These factors are not easy to resolve, Ben summed up.

Sharing experience from the Swedish market and the benefits of high-quality international standards

Lennart Grabe, the Deputy Secretary General of EPPARG, explained that although elderly populations are increasing, and modern healthcare can preserve the elderly’s quality of life for longer, “no pension system seems to exist” to adequately fund the active lifestyle they still want to enjoy.

Lennart introduced equity release in Sweden over 20 years ago, when he chose to implement lifetime mortgages. “It was of paramount importance that I could prove that it was a serious, well thought through product with ambitious standards for consumer protection,” he said. Lennart designed his product and marketing activities in line with the Safe Home Income Plan standards used in the UK.

Lennart Grabe

These SHIP standards eventually became the Equity Release Council standards, which Lennart described as a “very good role model for us all”, to this day. Having applied the SHIP standards to it, the equity release product introduced by Lennart dominated the Swedish market in view of its No Negative Equity Guarantee – in other words, prioritising the needs of consumers.

”We defined the business that has prevailed in the Swedish market,” he said. When EPPARG was founded, representatives from other countries “all had strikingly similar experiences. We soon realised the benefits of sharing experiences,” at which point EPPARG agreed to a “common, pan-European standard for all countries” that would ensure a safe market for both consumers and investors.

“Well proven pan-European standards give industry strong arguments in dialogue with rule makers in seeing to it that local legislation and regulation does not hinder or hamper this business,” Lennart proclaimed. Conversely, “a common standard also makes it possible to develop cross-border business,” noting that this brings benefits in funding, marketing as well as building volume. Pan-European standards give equity release products more credibility and a better reputation, he explained.

Protecting the customer in the Polish home reversion market

Robert Majkowski, CEO of FHD from Poland, explained how Poland transitioned from socialist to capitalist economics after observing that capitalism has been successful in Western Europe. Robert described Poland adopting capitalism as “a huge movement for our nation”.

Similarly, he continued: “What we also did in the home reversion and lifetime mortgage product was we have started to learn. Learn from more developed markets what to do, and how to create the market which was not existing, but which had started to grow quite quickly.” The code of conduct Poland uses for equity products today was inspired by the SHIP, now Equity Release Council, standards that many European countries followed.

Robert Majkowski

As a result, Polish markets “started to share the same impression that we have to take care of the client, the customer. The customer should be our main focus and we should protect the client to protect the market,” Robert highlighted. “Our way of thinking is almost the same,” he said, but noted that Polish markets do face the same hindrances to growth as other European markets do.

Robert boldly stated: “I believe personally that equity release should be a piece of the puzzle for pension schemes across all of Europe.” Sharing the same product standards and the same mission with the rest of Europe would only further enhance consumer protection, Robert suggested. However, because of funding constraints, Polish banks are reluctant to offer lifetime mortgages, but Robert stated that there is “great potential” in Poland’s equity release markets in the near future.

Facing funding challenges in Italy

Explaining the market situation in Italy, Claudio Pacella, CEO of 65 Plus – Moltiply Group, in Italy, explained that: “The problem that we had was not the potential of the market, it was not the regulation, it was the funding.”

“We started our experience as advisor and servicer,” he said, and the funding initially came from Italy’s banks. “Our idea was to help originating little portfolios of equity release mortgages in each bank,” which he hoped would lead to a relevant volume for the market. However, this approach did not help to move the market, due to capital requirements and “an asset and liability management that looked unusual according to banks’ experience”. Moreover, “cash flows’ modelling and interest rate swaps depend on actuarial know-how which is not common in the banking framework,” he noted. Finally, banks didn’t offer an ‘interest only’ version either, Claudio underlined.

Claudio Pacella

To resolve their funding issue, “we tried to step back from banks, and we started talking to pension funds,” Claudio explained. He cited Italy’s already existing pension funds for professionals “such as lawyers, notaries, and so on.” However, “even if the asset was perfectly fitting their needs, they needed an established market with high volumes to start investing at industrial scale”.

Upon concluding that funding constraints in Italy were too tight, “we had the fortune of joining and contributing to the founding of EPPARG, with whom we shared standards, experiences and know-how” as well funding projects, Claudio explained. “The last piece of the puzzle was the funding,” he added, which has now allowed Italy to offer “an open market product that is our own, as well as that of some of our friends in EPPARG.”

It took two years, but now funding is allowing Italy to successfully create an origination platform; Claudio compared the process to share funding from the UK to “the opposite of Brexit – this was continental Europe wanting to enter the funding of the UK”. He described the funding project as a successful start-up and hoped that it would be “a very successful development for all the participants.”

Winding up the discussion, Samantha Seewoosurrun thanked the four panelists for their contributions to the panel session before taking some questions from the floor. She invited the audience to follow EPPARG’s website and social media channels to keep up to date with its activities.

EPPARG members gather after the event

London, 20 March 2024: The European Pensions and Property Asset Release Group (EPPARG) and EY have today published the Global Equity Release Roundtable 2023 survey report, which highlights that the global equity release market could hit USD 50 billion by 2033, more than doubling its current size.

The report gathers data from market leaders across 13 countries globally with established or developing equity release markets, and analyses growth potential. The 13 countries span Europe, North America and Australia, and are considered to be amongst the largest equity release markets in the world.

Key findings from the report include:

There is an increasing need for the product given the cost of living crisis and higher inflation.
Among the countries analysed, over $17bn of equity is currently released each year for homeowners, but this is expected to increase dramatically by 2033, when the global equity release market is expected to reach $50bn in annual releases.
Banks are the most common source of financing for equity release mortgages globally, followed by insurance companies, securitisations and debt.
The most common type of equity release is the lifetime mortgage, which is available in the majority of countries covered by the survey, followed by home reversion schemes.
Equity release products are typically available to customers from the age of 55 or 60 years old, with a mix of fixed and variable rates offered.
The most popular product globally is the lump sum, with annuity and drawdown products available in a number of countries.
The most significant factor cited as impacting equity release pricing is interest rates, followed by funding costs and availability.
A lack of customer awareness is cited as the primary barrier to growth, followed by insufficient funding, notably in European markets.

Commenting on the survey findings, Steve Kyle, Secretary General of EPPARG, said:

“We are very much encouraged by the results of our latest survey, which confirms that equity release has an increasing role to play at global level in allowing elderly homeowners to draw on their own home as an asset to finance a decent and comfortable retirement. We will be continuing to build awareness of equity release products internationally in view of the significant social and economic benefits that they bring. In Europe, I am pleased to say that we are seeing a number of new innovative start-ups entering the market, which is still nascent in some countries, with a range of business models designed to offer new financing options to elderly homeowners.”

“At EPPARG, we also advocate a clear focus on ensuring high standards, such as our own EPPARG 10 standards in Europe, for both lifetime mortgages and home reversion products. Our goal is to foster an enabling environment which will allow the global equity release market to reach its full potential, as a safe and attractive option for investors and elderly homeowners alike.”

Ben Grainger, Partner at EY, said:

“Supporting growth in the global equity release market has the potential to transform thousands of people’s retirements, and it is positive to see such strong momentum currently.”

“Unlocking the global potential further will require deeper cross-border collaboration, achieved by sharing funding models, sources and best practice customer standards. Progress is happening, and we look forward to working with our clients around the world to grow and develop this market.”

Steve Irwin, President of the National Reverse Mortgage Lenders Association (NRMLA) of the USA said:

“Housing wealth remains one of the greatest assets for the vast majority of the ever-increasing global population of older homeowners, and the ability to access that equity, under the right circumstances, is the key to enabling a more secure retirement. As this marketplace expands and matures, which is clearly anticipated by the marketplace study, it will be necessary for participants to ensure consumer protections and education remain as a solid foundation of the product offerings.”

David Burrowes, Chairman of the UK Equity Release Council and EPPARG Board Member, said:

“This survey resonates with the Council’s understanding that growth of the market and unlocking property wealth to support the growing needs of later life consumers’ needs greater customer awareness. Maintaining and increasing consumer confidence needs to be based on standards and innovation which support good consumer outcomes.

The survey report is available here:

https://epparg.org/wp-content/uploads/2024/03/FINAL_EYGEN_2023_Global_ERM_Survey-FV.pdf

The report is based on data collected from equity release market players in the following 13 countries: Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Spain, Sweden, the UK and the USA.

Claudio Pacella, CEO of 65Plus – Gruppo Mutuionline in Italy and an EPPARG Board Member, explains how the signature of the first funding agreement between Centro Finanziamenti and international investors represents a game-changer for the Italian market, with an estimated overall market opportunity in excess of €2 billion.

How would you describe the shape of the equity release market in Italy at the beginning of 2024?

It is very important to distinguish between the vision we may have of the “historical” market of lifetime mortgages and its prospective vision. In fact, Centro Finanziamenti signed the first funding agreement with international investors; this is going to be a “game-changer” for the Italian market, since a lack of funding has always been the real bottleneck.

This is why 2024 is going to be a turning point and a strong discontinuity with the past: Centro Finanziamenti’s new lifetime mortgage is landing in the market as the first “open market” product, offered through third-party networks such as banks, financial companies, networks of agents and brokers. For some partners, a “white label” version will also be offered, which allows for the customization of the entire marketing and communication phase. These aspects are turning a small “multi-captive” market into a fully open market that now can fulfil the real market potential for volumes.

What has been the impact of the challenging global economic context on the Italian equity release market? Are you seeing some particular trends?

The global environment in 2023, with an unprecedented increase in financial rates, slowed down all credit volumes, including lifetime mortgages; therefore, lifetime mortgages have also been negatively impacted. However, looking ahead to 2024, a substantial stability in rates is expected together with the beginning of a material reduction: this also will help in adding a positive momentum to the market.

How do you see the current demand for equity release products in Italy and how can this be stimulated further? What is the role to be played by distributors, commercial banks, consumer associations or other organisations in building awareness and understanding of the product?

The demand for lifetime mortgages remains very high, similar to the UK market, although it is currently unexpressed. To this end, the role of distributors is a key element to increase the visibility of the product; we do not expect to see highly visible retail communication campaigns (B2C). For this reason, the role of distributors in peer-to-peer communication with customers becomes a key element. We have heavily invested in training and monitoring distribution networks and therefore we are confident that the process will proceed smoothly.

What more can be done to encourage investors to take a greater interest in funding equity release in Italy? How would you describe the market potential in Italy, in view of the ageing population?

The Italian market is undoubtedly one of the most interesting in the European context: high population density, the highest average age in Europe, a non-volatile real estate market, regulations consolidated in the last 15 years and no negative events in reputational terms. For all these reasons, the market to be seized in Italy is in excess of €2 billion. The best communication to investors will be the actual results of this new “open market”. Also for investors, the first mover will have an undoubted competitive advantage.

What are your predictions regarding the prospects for the equity release market in Italy in 2024?

Centro Finanziamenti and 65Plus leading this change in the market will accelerate the whole longevity economy sector. The more visible side will be the distribution front, while there a centralized management, for the first time, will enhance adequate economies of scale.

Thomas Bodereau, Co-Founder and CFO of French lifetime mortgage provider Arrago, describes the company’s journey to date and shares his perspective on prospects for growth in the French market, in view of the ageing demographics and high home ownership rate.

What was the rationale behind the creation of Arrago back in 2017? What potential did you see for the lifetime mortgage market to develop and what has been your experience since then?

Arrago has already had ‘two lives’. In 2017 we were a private debt broker specialized in sourcing performing private debt from 2^nd and 3^rd tier French banks’ balance sheets. Those private debts were sold through a call-for-tender process to various asset managers, insurance companies or banks across Europe. We had sold around EUR 600 million of those private debt, especially long duration ones.

We held a specific discussion with British investors about lifetime mortgages as a very interesting asset class. It appeared that we knew very well the French lifetime mortgage because Arrago’s team is composed of three former Crédit Foncier de France (“CFF”) officers, and CFF had been the only bank which was very active in the realm of such mortgages in France.

Thus, in late 2019, we kickstarted Arrago’s ‘second life’ by deciding to move forward and develop such an offer in France. We were convinced of the benefits for the French people as they were only served through home reversion (known as “viager”) which is not a mass market product.

In 2022, our endeavours led us to raise EUR 5m in equity and EUR 50m of debt to start providing lifetime mortgages. We launched our offer in March 2023 with a French retail bank.

What potential did you see for the lifetime mortgage market to develop and what has been your experience since then?

Demographics in France are similar to those of the UK, with a similar rate of ownership by elderly people. We foresee a potential equivalent lifetime mortgage market in France to that of the UK. Home reversion represents only 5,500 transactions but in my view lifetime mortgages are a much broader product and could be ten times bigger. However, people in France are not currently much aware of lifetime mortgages because the offer has been very limited so far. The aim is to build wider awareness and familiarity with the product.

2023 was our first year, where we were active for just 10 months. We have assembled a full team of 11 employees to achieve a complete operational base and are already the leader in the market with EUR 10m originated. We already have much bigger figures in our business pipeline for 2024.

How would you describe the current market for equity release in France?

The market for equity release in France is currently very tiny since there was hardly any offer, but we know that several banks and fintechs are looking at this area closely. For banks the market is small and in its nascent stage as compared to their more established forms of lending (consumer loans and real estate loans).

What sales channels are available in France?

In France equity release products can be sold by retail banks, brokers, and promoted by business introducers such as home reversion providers, realtors, companies offering products or services tailored to the over-60s, and insurance companies having elderly people as clients.

How are lifetime mortgages used in France to supplement the income of elderly homeowners? What are the primary uses of the product?

While on average France pensions are rather high as compared to some other European countries, they are under pressure and have been impacted by recent inflation. Our customers mainly use the proceeds to refurbish their homes, offset pensions which may be declining in value in view of high inflation, make gifts to their family and early repayments on existing amortizing loans.

What opportunities do you see for new funders and investors to enter the French market?

France is potentially the biggest market in continental Europe for two reasons:

Very supportive demographics
Home ownership rate above 70%

Regarding funders, established players from the British market and French insurance companies have a fantastic opportunity to enter a market in its early stage and under rather promising conditions.

Pierre Cornet-Vernet, Co-Founder and CEO of Jubilé from France, explains the company’s mission to empower the elderly in France, where over 70% of senior citizens own their primary residence and are increasingly in need of financial solutions.

Can you tell us about the rationale for the creation of Jubilé, as a French start-up established in 2021, against a backdrop of changing dynamics in the French equity release market in recent years?

We began with a straightforward observation: currently, the elderly in France have limited options for financial solutions, particularly ethical ones. Banks predominantly lend to young, healthy individuals employed on permanent contracts. However, the financial needs of our seniors are substantial. They require funds for home improvements and modifications, ongoing home maintenance, healthy ageing, costs of dependency, and providing intergenerational support. Access to credit is a critical issue for them and their families, representing a broader societal challenge.

Another key observation is that over 70% of seniors in France own their primary residence, which translates to more than 10 million individuals. What are their options? Mostly, they have none. The typical solution involves selling their home, either outright or through a life annuity. While this approach addresses some needs, it’s far from ideal. We believe we can do better, particularly by keeping the property and its potential future value within the family.

In our search for a solution to finance our parents’ needs, we explored various options. We discovered that the consumer code already includes a law for exactly this purpose: the reverse mortgage (or “prêt viager hypothécaire” in French). Defined with precision by the consumer code since 2006, the maturity of a reverse mortgage is linked to the borrower’s estate, the sale of the property, or it can be settled early at the borrower’s discretion. Moreover, this type of loan, being zero coupon, does not strain the already tight monthly budgets of seniors.

However, today, almost no bank offers this service. That’s where Jubilé steps in, offering a new financial solution for our elderly. We are dedicated to empowering the elderly, ensuring their financial stability, and recognizing their invaluable contributions. It is our mission, our ‘raison d’être’.

How would you describe the current position of the equity release market in France, at the end of 2023? What types of products are available on the French market? What are the main sales channels used to reach potential customers?

The equity release market in France is still almost non-existent. It is beginning to develop, primarily through small startups like ours, as well as some initiatives from a major bank. However, amidst growing inflation, decreasing pensions, and the rising cost of living, our senior population is increasingly in need of financial solutions.

Despite its underdevelopment, seniors have alternative ways to leverage their real estate assets. These include the life-annuity sale, known locally as “viager”, and the sale of bare ownership, or sale of “nue-propriété” in French. While these methods can provide financial relief in later life, they also involve selling and losing ownership, which may not be feasible for everyone.

We anticipate that the market will begin to attract more attention next year. The launch of Jubilé should contribute significantly to this increased interest!

Regarding sales channels, the field is relatively narrow so far.

How do you see the level of consumer awareness of equity release options in France? What are some of the main uses of equity release products in France? What trends are you seeing currently?

In France, the concept of reverse mortgages is still relatively unknown, especially compared to countries like the USA or the UK. Despite being available in the French law for some time, there is a noticeable lack of consumer awareness and understanding. This may be partly due to the limited offers at this stage.

We launched our digital platform in 2023, and to date, a significant portion of our demand stems from unforeseen expenses such as home renovations and maintenance. Costs related to ageing is a strong driver as well.

Regarding current trends, the market is still evolving, but recent efforts are focused on revitalizing and securing this type of loan. Nonetheless, the high cost of reverse mortgages continues to be a significant obstacle to wider acceptance. There are ongoing efforts to reduce these costs and enhance the appeal of the product.

How do you see the appetite of investors for moving into the equity release space in France, and how can this be further stimulated?

The reverse mortgage market in France is currently viewed as a specialized sector, characterized by a cautious approach to investment. This caution stems from the product’s complexity, concerns regarding the age of borrowers, the unique regulatory landscape, and compounding interest. It doesn’t fit in any traditional investment category.

Despite these challenges, there is significant potential for growth, especially considering the ageing population and the important rate of property ownership among seniors.

Many major financial institutions are demonstrating a willingness to assist their elderly clients and could potentially consider this excellent product.

To stimulate investor interest, clear and favorable regulations are essential to encourage investment in this sector. Potential measures could include guarantees to mitigate perceived risks, or reduction of capital requirement for banks on the product. Furthermore, collaboration with banks and other financial institutions is crucial for integrating reverse mortgages into broader retirement planning strategies.

Looking ahead, what are your plans for Jubilé in 2024? How do you see prospects for growth across the French market more broadly?

Regarding Jubilé, we are gearing up to embark on our journey in Q1 2024 with a major French bank through a pilot project across several regions in France.

So far, we believe that in France, the issue is more about a shortage of quality offerings than a lack of demand

However, lack of awareness and understanding of reverse mortgages among the general public is quite a hurdle. To tackle this, dedicated efforts towards education and awareness-raising are essential. By effectively communicating the benefits and protections that reverse mortgages provide to borrowers and their heirs, we can foster greater interest and demand for these financial products. This strategy not only addresses the immediate financial needs of seniors but also contributes to creating a more informed and empowered group of consumers.

The importance of understanding ageing customers and their needs was the focus of a plenary session held at the UK’s Equity Release Summit held on 16 May 2023.

The session explored the vulnerabilities of the sector’s consumers, addressed the industry’s responsibilities in supporting these consumers in later life, and stressed upon the innovation required to ensure the continued stewardship of consumer safeguards. The panel was led by consumer champion and commentator, James Daley, founder and MD of Fairer Finance; and counted stellar speakers such as Mike Ellicock, Co-Founder & Chief Executive, Plain Numbers; Richard Lane, Director of External Affairs & Operating Subsidiaries, StepChange; Chris Pond, Chair, Financial Inclusion Commission and Lyndsey Fallon, Partner, Deloitte.

Jim Boyd, CEO of the Equity Release Council, launched the panel discussion by requesting Jeff Prestridge, Group Wealth & Personal Finance Editor of Daily Mail and General Trust (DMGT), to deliver the keynote address. A consumer campaigner and a newspaper finance journalist for over 25 years, Jeff has been a major commentator in helping consumers make more informed decisions.

Jeff Prestridge started by emphasising that the 350 delegates present reflected the importance of the Equity Release Council (ERC), with the equity release market sure to grow as elderly people continued to use their homes to release much needed liquidity.

“Times are going to remain tough for quite a while and equity release will provide a financial solution. At the ERC, your key role in raising standards means we now have an equity release market which is fit for purpose. Yet, there is no room for complacency. It is vital that the consumer comes first and is at the heart of everything you do – yes, the FCA is imposing consumer duties on you – but serving the best needs of consumers should be built into your DNA,” he highlighted.

He noted that the equity release industry at inception had promoted certain schemes, involving the use of customer bonds, that were nothing short of calamitous, with customers hit by a double whammy of falling stock markets and a stiff housing market correction. He noted that he would use his keynote address to steer the discussion away from this dark and dim past, by reflecting on what the industry should do to be fit for the future.

“The industry must remain fully focused on providing customers with transparent, value for money products underpinned by no negative equity guarantees. It must also be committed to providing stellar service, not just in the run up to the plan being purchased but during the plan’s life,” he noted. He also emphasised that equity release is not for everyone and that there are better alternatives such as retirement interest only mortgages or releasing equity through downsizing, pointing out that every sale must be underpinned by what is good for the customer, not the provider or advisor.

He noted the industry’s willingness to keep evolving and adapting, in the process making the plans far more flexible such as, the ability of plan holders to counter the impact of compound interest on their mortgages. “In 2022, equity release customers made nearly 190,000 penalty free payments, 50% up on the year before, saving nearly £ 160 mn in future interest costs. That is great for consumers and for the reputation of the equity release market. It is a double win!”

He lauded the council for wiring into its standards a requirement for all new plans to provide penalty-free, partial repayment options; extending the ability to borrow amounts under equity release plans on a piecemeal basis; building inheritance protection into plans; and the emergence of a re-mortgage market enabling borrowers to switch to cheaper plans.

“We now have more than 1,500 advisers and the industry is attracting new players, whether new advisers or funders. The more providers in the market, the more competition it will spark, and the more innovation it will lead to, in the process driving down charges,” he commented.

He noted the great progress that the industry has made in recent years with the ERC having recently put in place measures such as recommending all providers show charges and set out key information in a way that buyers can understand easily; any plan sold to show how the loan will grow over time; no plan to be sold without everyone concerned showing that they understand the impact of compound interest on the loan; and an imminent announcement that family will be given key information at key points in their equity release journey, for example, when the loved one dies or when the plan ceases.

He urged that the industry should be better at pointing out the practical uses of equity release, be it to make home improvements, to adapt homes to specific care needs or to fund at-home care, driving home three key points in conclusion:

The industry needs to do more to educate the public with a more consumer-friendly Council website;
As scamming is on the rise, the industry must do more to ensure consumers do not fall foul of scammers; and,
With lending for the first quarter this year at its lowest level since the pandemic, people clearly still feel cautious about buying into a fixed rate product, hence the Council must analyse the impact of higher interest rates on the market.

Next, James Daley took over on the note that good progress had been made in just the last 3 years since he addressed the audience, and that the latest regulation on consumer duty boded well for the future.

“Consumer duty comes into force in just 11 weeks. It provides an obligation on all financial services firms not just to work towards delivering good customer outcomes but to prove that they’re doing so and to attest so at board level every year.” He summarised that it meant proving that you’re offering fair value, that you’re providing the right level of support to customers, that you have robust product governance in place and that you’re communicating with customers in a language they can understand.

He highlighted that there needs to be a clear basis for justifying product pricing, rates being what they are, and also emphasised that communications is an area where all companies, not just equity release companies, have a lot of work to do. The consumer duty now expects it of the players to simplify the technical jargon, he added.

He concluded on the note that the good news is that if the industry can meet the requirements, their interests will be much more aligned with the interests of consumers, soberingly cautioning players that ‘it takes years to build a reputation for trust and integrity and seconds to shatter it.’

James next introduced the members of the panel, first up being Mike Ellicock, co-founder and CEO of Plain Numbers, who started his career in the military, did an MBA, and ended up running a mass education business. He then founded a charity to improve numeracy across the UK which led to the creation of Plain Numbers in 2020.

Mike took to the stage to address how the industry can communicate better. He cautioned that half of adults understand as much as primary schoolchildren. He further highlighted that the issue is not just about numbers but also about attitudes – about how numbers make people feel.

“The first thing is about numbers themselves. There is plenty of evidence about how to communicate around numbers so that more people can understand. Secondly, put numbers in context – avoid three letter abbreviations and try to overcome the curse of knowledge. The third element is about behavioural science – how do we as humans think and how do we communicate with customers in a way that acknowledges their behavioural biases and their natural way of thinking,” he explained, elaborating on the Plain Numbers approach, which was trialled back in 2021 with support from the Bank of England with 5 different firms across 4 different industries, and subsequently support from the Treasury department, with the coverage now spread to 30 firms across the UK.

He also cautioned that consumer duty is a sprint to the finishing line with the real marathon yet to begin. He concluded that Plain Numbers is here to support firms to build this approach into their core framework, and that it was able to double the number of people that could understand communication coming from financial services firms.

Next up, James turned to Richard Lane, who has served as director of external affairs at the largest debt advisor in the UK, Stepchange Debt Charity, for the last 5 years, prior to which he was working in comms and marketing at national disability charity, Scope, and was working on campaigns and public affairs at the LGBT charity Stonewall.

Richard explained that StepChange has been providing debt advice and that it helps half a million people with their financial difficulties. He emphasised that the landscape in which StepChange operates has fundamentally changed through the pandemic and now the cost of living crisis meant that it is dealing with more vulnerable clients than ever before. In the past people contacted StepChange because of a life event but now it is because of the cost of living crisis, he soberingly remarked.

He rued that they are now fundamentally running out of tools to help people as individuals are contacting Stepchange with a negative budget. Ultimately, some of these changes cannot be fixed by such advisories or financial services sector but need changes in public policy – the government needs to put in place a safety net, continue energy support, and provide social tariffs, he elaborated.

“We have to find any tool that we have at our disposal to help people. Equity release absolutely, categorically has to be part of the solution. We at StepChange provide it and think it is an absolutely vital solution for some people,” he noted, while cautioning that it doesn’t mean that equity release is perfect. He soberingly noted that research shows how people are incredibly confused by the communication they receive when they are in financial difficulties, which is also a point in time that people are most reluctant to approach experts for support.

James next turned to Chris Pond, who recently ended more than a decade’s tenure as chair of the standards board for Equity Release. He has served previously as director of the FCA and is currently chair of the TrustMark Board.

Chris chose to address the audience upfront on the opportunities offered by equity release. He reflected on green finance and how people can reduce cost of living through securing energy efficiencies and also contribute to net zero targets through equity release offerings.

He highlighted that he was fascinated by the statistic that 32% of well-to-do customers of equity release have absolutely no concerns around it. However, the rise from 7% last year to 32% this year has been among the well-heeled clientele who have benefitted from the standards that have been put in place by the ERC over time.

“All the time standards evolve and change to the evolving market. As a result of the standards you have influential people like Martin Lewis or Hector Sanz stepping up to say that for some people the equity release market is all right and as long as you deal with someone from the ERC you should be ok if the circumstances are correct. However, here is the challenge. There is another cohort – the two and a quarter million more people that the FCA told us have been pushed into financial difficulties because of the pandemic, and that was even before the cost of living crisis hit,” he reflected.

He concluded on the note that, as Jeff pointed out, more and more people would be turning to equity release to supplement inadequate retirement incomes, and the challenge is that more of those people would be hailing from increasingly vulnerable backgrounds. Hence, the equity release market would need to continually adapt products, services and standards to cater for such people, he noted.

James finally asked Lyndsey Fallon, partner at Deloitte, to reflect on the concept of fair value. Lyndsey pointed out that a lot of time and investment has gone into consumer duty so far, and also into considerations needed around fair value assessment and the outputs of that. She emphasised that it has generated the right debate and discussion around interest, fees, charges and features needed to ensure that all customers are able to access the benefits from equity release, and in particular, cohorts such as vulnerable customers.

“One of key challenges for firms is the availability of data analysis to be able to demonstrate how different customers they interact with are able to access value from products such as equity release. That is going to become important moving forward as a need to show that you are offering fair value. As I reflect on a number of debates and discussions today there is a lot of talk on purpose and use cases (social care, green finance, retirement planning) but actually you really need to evidence you are reaching the right customers because that is where you will be able to demonstrate the most value from the products and services you offer,” she emphasised.

Secondly, she noted the challenge of defining the roles and responsibilities across equity release – funder, manufacturer and distributor – have regarding product design, price, fees and charges. She emphasised that consumer duty has helped shape that discussion and debate.

“If we look at what the FCA has started to say over the last week – if you have done your fair value assessment, how is that effective? This is going to move to focus on evidence and monitoring, to be able to demonstrate fair value,” she concluded.

Finally, a key audience question was posed on the issue of comparing equity release with other products such as mortgages based on the ability of customers to make monthly committed repayments vs flexible repayments as the only option in the equity release market being touted in the media.

Jeff Prestridge stated that it is all about education, and that most people in the press who consider themselves qualified to write about personal finance, understand that equity release is far more flexible than it was a decade ago, and that providers now allow customers to make part or even full monthly interest repayments. “There is an education exercise out there – people just assume with equity release that all the interest will roll up and that isn’t the case anymore. It’s a message that you need to get out as an industry and a message that people like myself and James need to beat the drum about. One of the great attributes of equity release 2023 is its far greater flexibility and consumer friendliness, so it is maybe simply a question of communication now.”

Jeff Prestridge concluded by emphasising the importance of trust and human interaction in building an equity release market that works for consumers.

“What counts is your relationship with your clients and building trust – you can’t do it on the telephone or the internet – it is all about face-to-face interaction and about coming around on an ad hoc basis to explain how the plan is progressing. That is a great advert for quality advice that we should allow to breathe in this country,” he noted.

The potential role of the UK’s £5 trillion property wealth in addressing major societal challenges facing the UK’s ageing population was the subject of a recent report commissioned by the Equity Release Council, entitled ‘Later Life Lending: Great Expectations’. The recommendations of this report were explored in a plenary session at the UK’s Equity Release Summit on 16 May.

This independent report was commissioned by the Equity Release Council earlier this year, and was published by Jon Dunckley, CEO of About Consulting Group. It was commissioned to help set out a route map for all market participants – including government, regulators, and industry – to better support the UK’s ageing population.

The report calls for coordinated action to build on recent progress to create a later life lending market which reflects consumers’ evolving needs and can support a joined-up approach to using property wealth in later life financial planning. The ultimate aim is to raise retirement living standards and equip homeowners and their families to enjoy a better quality of life.

The session was introduced by Jim Boyd, Chief Executive Officer, Equity Release Council, who explained why the report had been commissioned, and was followed by a panel chaired by Tom McPhail, Director of Public Affairs at the lang cat. The findings were discussed by a number of expert panellists, namely Jon Dunckley, CEO, About Consulting Group; Paul Broadhead, Head of Mortgages and Housing, The Building Societies Association (BSA); John Somerville, Head of Financial Services, Corporate & Professional Learning, The London Institute of Banking & Finance (LIBF) and Charlotte Allen, Chief Compliance and Risk Officer, Key Group.

The future of retirement will have to change

Introducing the session, Jim Boyd noted that in 10 years’ time one quarter of the UK’s population would be 65 or older, and that “the future of retirement will have to change” as there would be fewer working people to support an increasing share of public spending on older people.

He mentioned that he had attended a “brilliant meeting” of EPPARG members the previous evening, which brought together market players from the US, Canada, Australia and Europe, and highlighted that “the commonality of issues is what stood out. There is nothing new here. This is a global issue for advanced economies”. He asserted that “unlocking the huge reservoir of property wealth” might not be the whole solution but it would play an important part.

He highlighted that UK net property wealth is worth £5.6 trillion pounds, representing approximately £228,000 per household, and that according to Savills, over 50s own 78% of the UK’s housing stock.

In terms of equity release, since 1991, 640,000 homeowners had accessed £45 billion from Equity Release Council members, and last year the average equity release plan was worth £133,000. He saw that this could close the gap from a minimum pension for around 18 years of a moderate lifestyle. He also noted how equity release could support women, who tend to have the worst pensions, live longer by themselves and who are the least likely group of people to shop around for alternative assets. He explained that a quarter of all equity release plans taken out provide some sort of living inheritance for the next generation, which can help them to get on the housing ladder and also to support environmental improvements.

Considering that the contribution of equity release to the UK economy is “clearly significant”, Jim asked “why is it not achieving its potential?” In his view, the regulatory framework is disjointed, with mortgages and equity release subject to different regulations, with too many advisers working in silos. He saw that the UK had a department of work and pensions, but not a department of work and retirement. “If you can’t align the objectives with government in a coherent way it is impossible that those broader conversations can be understood at a higher level,” Jim underlined.

Since property – which is the biggest asset for most people – is not included, Jim urged that the government and industry should “work together to collectively agree a blueprint for the use of what housing wealth looks like in later life” and explained that this was why they had commissioned an independent report from Jon. “Every time I read about a pensioner with a house of about 300k unmortgages, struggling to make choices between heating and eating, and they haven’t considered the option of housing wealth …. I treat it as a failure,” Jim concluded.

Finding the right solutions for later life lending

The discussion was led by Tom McPhail, who noted the people who were expecting an inheritance were now mainly in their 50s and asked if that was the best point in life to receive the money. He saw that equity release could fix more problems for people and saw that there was an opportunity to stimulate economic growth. He saw that despite product innovation and standards, “we are not making a lot of headway” since it had not changed the game yet. He emphasised that “most people still have a fairly negative perception of the equity release sector” and saw that there was a gap between equity release advice and wealth management advice more broadly.

As the author of the report, Jon Dunckley, stressed the need to come up with a political consensus on the way ahead. He highlighted that the UK has got an extremely adversarial political system where “an opposition that agrees with government policy is seen as weak”. He saw that without a political consensus, “no one has the bravery to face into the really difficult challenges that we have got as a country with a policy that might have a chance of resolving it”. He described the care system in the country as “broken”, where there should be an option of making it easier for people to take care of themselves. Overall, he saw that a consensus could only be built if there was a will and support of leadership and ideas.

Paul Broadhead saw that the challenges had now evolved. He considered that for government it is easier for industry collectively to start to have discussions “rather than asking government to decide our future”. He thought there was a need to ensure people are getting the right financial solution for their circumstances at the right time. He also underlined that the mainstream and lifetime markets operate in isolation and are subject to different regulations.

John Somerville remarked that “there is an awful lot of education needs to happen in order for us to move forward” and saw that the shortage of housing was an issue. He advocated that “we have got to stop sitting in silos” and considered that “wealth advisers don’t care that much and equity release advisers need to get their point across”. He urged that the industry to “create a need that wealth advisers can’t walk past” as they could refer the customers. “If you are not talking to wealth advisers in your locality it is about educating each other,” he summed up.

Elaborating on the point of referrals, Charlotte Allen noted that the regulators were doing a lot of work on the sector and saw that “if a customer can afford to make the payments then equity release might not be the right thing”. She saw that there was a need to have referral networks to other partners where a different type of advice was needed.

The report “Later Life Lending: Great Expectations” can be accessed here.

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EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

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EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

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EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.

<>

EPPARG Panel discusses Market Opportunities, Regulation and Innovation at 2026 Later Life Lending Summit: Leaders’ Symposium

At the 2026 Later Life Lending Summit: Leaders’ Symposium, held at Church House, Westminster on 16 June, EPPARG hosted a panel of leading European industry practitioners to explore global lessons in market development, focusing on how to unlock the untapped potential of equity release, and drawing on the findings from its most recent Global Equity Release Survey.

1 in 3 equity release loans going to single women as total lending at Spry Finance rises 30%

Single women accounted for one in three equity release loans issued in Ireland last year, according to new figures from Spry Finance. Spry reported total lending of €75m in 2025, a 30% increase year-on-year. The figures reflect how equity release loans are increasingly being used to help support retirement, refinance existing mortgages, and help support families with a living inheritance.

Equity Release: Global market on track to hit $56 billion by 2035

The European Pensions and Property Asset Release Group (EPPARG) and EY published the third edition of its Global Equity Release Survey report on 17 June 2025. The report predicts sustained growth over the next 10 years, despite economic headwinds, with the market more than doubling in size.