Blunkett backs equity release

MP David Blunkett has indicated his support for the equity release sector and sent a rallying cry to the industry to develop more products that enable more homeowners to free up some of the cash tied up in their homes.

Speaking at the first annual equity release lunch hosted by Safe Home Income Plans (Ship), Blunkett said as a baby-boomer himself he "realised the enormity of the pension and longevity challenge facing the nation."

He said: "With a substantial amount of the £700bn UK housing equity potentially available for equity release, it obviously has a future in helping to deal with the most enormous challenges facing us as we age."

Andrea Rozario, director general of Ship, said:

"2009 has been a challenging but successful year for Ship with the launch of our discussion paper, maintenance of high customer safeguards and our focus on developing our profile within Westminster.

"The coming year promises challenges and opportunities, with the support of our members and other interested parties, I am confident that 2010 will be a successful year for all involved with equity release market."