The majority of advisers expect a rise in enquiries about later life lending in the next 12 months, says Key Later Life Finance.
Its study found 54% of advisers expect enquiries to increase, driven by the launch of new products and increased confidence in the housing market.
Around a third (35%) expecting a rise in enquiries say part of the reason is the development of new later life lending products for specific customers, while 34% point to growing confidence in the housing market.
The equity release adviser said more than a quarter (27%) believe house price rises will drive increased demand over the next year, with a similar number (26%) citing further interest rate cuts.
However, Key said the research also identified high levels of untapped demand, suggesting that the later life lending market is not achieving its potential.
Nearly nine in ten (87%) advisers estimate they have clients who would benefit from later life lending products, including 38% who believe this would be the case for more than half their clients. Almost all (93%) advisers surveyed say they have at least one client a month asking for later life lending products, but the research found advisers seem limited in what they can recommend, with less than two in five (36%) saying they would look at all options.
Will Hale, group director at Key, said: “Optimism about the later life lending market remains relatively high with the year ahead looking positive following a reasonable past 12 months. However, we remain a long way off the highs of 2022 and although there are signs of a recovery it continues to be a challenging period for specialist advisers and lenders.
“The real cause for optimism is that advisers are recognising that more of their clients would benefit from later life lending solutions. The challenge is of course translating untapped demand into material market expansion so more customers can benefit from these modern later life lending products that are well-positioned to address the wants and needs of the over 50s.”
Hale said the key barrier is advisers focussing on their own area of expertise and not thinking more widely.
“We must continue to encourage advisers to consider all options and to put trusted referral relationships in place with other specialists in order to achieve better outcomes for customers,” he added.
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