The European Pensions and Property Asset Release Group (EPPARG) and EY published the Global Equity Release Roundtable 2023 survey report, which highlights that the global equity release market could hit $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.
- NRMLA participated in the survey on behalf of the U.S. market.
The big picture: Among the key findings in the report is an increasing need for equity-release products given the cost-of-living crisis and higher inflation.
- The most common type of equity release is the lifetime mortgage, which is available in most countries covered by the survey, followed by home reversion schemes.
- A lack of customer awareness is cited as the primary barrier to growth, followed by insufficient funding, notably in European markets.
In the announcement, Steve Irwin, President of the National Reverse Mortgage Lenders Association (NRMLA), 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.”
