The Intermediary – July 2025 - Flipbook - Page 18
In Profile.
The Intermediary speaks with Jim Boyd, CEO of the Equity
Release Council, about how holistic advice is critical
A
ccording to Scottish Widows,
39% of people are currently on
course to miss the minimum
retirement standards, up from
35% in 2023. Against this
backdrop, housing wealth is primed to take centre
stage. With an estimated £23bn in housing equity
available per year by 2040 if tackled properly,
according to Fairer Finance, The Intermediary
sat down with Jim Boyd, CEO of the Equity
Release Council, to understand the scale of the
opportunity, and what must be done to bring
equity release further into the conversation.
Growth of the market
At a time of heightened scrutiny for the entire
finance and advice market, Boyd says: “[The
regulator] has a dedicated focus on later life
lending. That demonstrates the importance of this
market. We’ve got a rapidly ageing population,
and people within that space have inadequate
retirement savings.”
This is not only being exacerbated by economic
turbulence and the ongoing cost-of-living crisis,
but by a fundamental shift in how we fund
retirement – namely, the decline of defined benefit
(DB) or final salary pensions. Meanwhile, if the
Government wants to stimulate growth in the
economy, that £23bn figure is significant.
“By 2040, 50% of people are likely to draw on
some kind of housing equity,” says Boyd.
“This isn’t just a small, or even a significant
market, this is already a mainstream market.”
The Financial Conduct Authority (FCA) is keenly
focused on the barriers and opportunities around
growth in this market, with chief executive Nikhil
Rathi reinforcing that the home is often a person’s
biggest asset. Meanwhile, lending to those aged
over 55 made up 7.6% of all mortgages in Q1 2025.
The next step is to make sure that the market is
prepared for growth and the inevitable increase
in demand. Boyd says: “We need flexibility to
promote consumer understanding and innovation
in the market. This is a dynamic intervention
from Government.”
He adds: “There’s a real risk that property wealth
might be overlooked if the Government doesn’t
develop a vision for it. In the same way that
without Pension Wise, pension wealth might have
been overlooked following Pensions Freedom.”
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The Intermediary | July 2025
To “make sense of the shortfall” facing so
many approaching retirement, even from a
great distance, Boyd calls for a “multi-asset
approach,” that shifts the narrative away from
just pensions, and towards an individual’s whole
economic picture.
This, he adds, must be reflected in regulation
and policy. For example, downsizing provides
individuals the opportunity to move into a home
that suits their needs, while freeing up funds that
could support care, lifestyle or loved ones, as well
as creating movement in the property market.
Boyd says: “Downsizing makes a huge amount
of sense, providing you’ve got a coherent strategy
based on looking at the last-time buyer.”
He notes that treating pensions, mortgages
and savings as separate silos is not going to get
consumers the best outcomes in retirement, and
confirms that the regulator’s approach is to work
towards an interconnected network.
He adds: “It’s not just a consultation on separate
points, it’s a significant undertaking welcoming
insights from experts on a multi-sector basis.
[This] stands out as one of the more significant
engagements by the regulator in recent years.”
While a truly cross-collaborative approach might
seem hard to reach, Boyd points to the Council’s
own work with major trade bodies across the
mortgage market, implementing conversations
with representatives from Government,
consumer groups and various trade bodies, to find
commonality and understand the barriers to and
opportunities for growth.
“Everyone agrees that someone approaching
retirement should be able to draw down from all
their assets in a way that is well guided or advised,”
Boyd says. “A mortgage adviser, meanwhile, is
sitting on the biggest asset that people in Britain
have. A property adviser is going to need to be the
first point of call for many people – not just those
taking out residential mortgages.”
Vibrant and evolving
To get consumers to see the bigger picture, this
conversation should be happening earlier in
the process. With changes to pension schemes
and the economic environment, people are
“more responsible for their individual wealth
accumulation and decumulation” than ever before.
A young first-time buyer might seem far off from
