Customers referred to specialist equity release brokers by other advisers have significantly higher house values than the market, according to new analysis by referral service Key Partnerships.
The average house price across the country for referral customers is around £332,500 – more than 20% higher than the £275,000 for the equity release market as a whole, the analysis of its customer data shows.
In London the gap between market averages and referral customers rises to 24% with referral customers owning homes worth nearly £718,000 compared with around £579,000 while in the South East prices are 25% higher than the rest of the market at £413,000 compared with £329,000. Referral customers in the South West, East Anglia, North West, West Midlands, Yorkshire and Humberside, Scotland and Wales also have higher than average market property prices.
Key believes that the higher property values for referral customers are down to the wealthier client bases of advisers who do not focus on equity release but recognise the need for specialist support in order to secure the best outcome for their customers.
Advisers using the referral service earn on average £1,450 on completion of the equity release plan and ensure clients receive the best possible service including access to exclusive deals, Key says.
Will Hale, director at Key Partnerships, said: “Advisers who do not focus on the equity release market are increasingly recognising the need to offer a service to clients and that is being reflected in the higher property values.
“The equity release market is growing rapidly and the need for specialist advice is becoming more important. Referring customers to a specialist partner ensures they receive the best outcomes and removes all the regulatory and compliance worries while enabling advisers to maintain a valuable client relationship.”