SHIP says there is no need to abandon the idea, but instead people should make sure they consider only those providers that offer crucial guarantees that provide protection from falling property prices given the current climate.

All SHIP members must meet the trade body’s high minimum standards and these include firm guarantees that provide important protection for consumers against the impact of falling house prices.

Its ‘no negative equity’ guarantee means borrowers will never owe more than what their house is worth, whatever happens in the property markets. The security of tenure promise also means homeowners have the right to stay in their property until they either die or move into long-term care.

In addition to the reassurance that these guarantees provide, SHIP also points out that equity release is a long-term product proposition and as such, shorter term house price volatility is much less relevant. The long term trend of property prices is almost always upwards, and even if there is a slide backwards for a period of time, SHIP says history shows that it won’t be long before prices bounce back and probably go on to reach even higher levels in the future.

Andrea Rozario, director general of SHIP, said: “The current situation in the property market does not mean the door is closing on equity release – far from it.

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“Declining levels of pension investment – by individuals and employers – and the extent to which Britons have in preference invested heavily in property for many years now, mean that equity release will become increasingly important, even if property values do come down from their recent highs for a while.

“There is an argument for those planning to access the value in their property to move quickly if their need is imminent. Those looking to the longer term should take comfort in the longer term trend in property values which is always up.”