Safe as houses?
The UK's property market has turned from boom to bust, decimating the earnings of mortgage-related companies - but insurers operating in the equity release side of the market are bullish for a product some players claim can hedge against longevity risk. Aaron Woolner reports
2008 has seen average house prices fall by 15%, mortgage lending levels drop by 45%, and repossessions increase by 12% between the second and third quarters alone. No word but crisis can be used to describe the state of the UK's housing sector, as lenders exit the market and unemployment soars in the financial services sector.
But one part of the mortgage market is set for expansion - equity release. A report by Mintel, a market research company specialising in predicting consumer behaviour
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