Is it safe to say it now? The pandemic is finally over, right? After two-plus years of ‘in, out, shake it all about’ lockdowns, it feels pretty strange to be out the other side.

In truth, it almost feels like both yesterday and ancient history, all at the same time. But it really is nice to see the world getting back to normal.

Now, of course, winter is coming and we will surely see a Covid spike, but it does seem as if we are well and truly clear of the dark days of Lockdown One. And thank goodness.

The lockdowns threatened to hit us for six, but we stood firm

For both people and business, the lockdowns have been brutal. Plus, the long shadow of the international shutdown and other equally morbid global events have led to the ongoing cost-of-living crisis and inflation surge we are experiencing today.

But let’s be positive: how can we all get back on our feet, and how can business get growing again?

Consolidation

For equity release, my corner of the wider mortgage market, the past two years or so have been ones of consolidation. The lockdowns threatened to hit us for six, but we stood firm and the market stayed steady.

Now, however, with the pandemic — hopefully — in the rear-view mirror, we can finally look to the future with renewed vigour and optimism. And this isn’t just sunny-side thinking; it’s borne out in the figures.

Helping people fully understand all the options available to them is at the bedrock of everything we do

According to the Equity Release Council (ERC), in the second quarter (Q2) of this year more than 200 people each day chose equity release. This represents a whopping £1.6bn of property wealth withdrawn to help customers around the country in these tricky times.

But, more tellingly, new plans saw a 26% jump from the same period last year.

And even more revealing is that the 12,485 new equity release plans agreed in that three-month period are just shy of the 12,891 peak recorded in Q4 2018. So, despite the national and international turmoil, and the pandemic being still a recent memory, our business is ready to fly again.

Delving deeper still, another interesting trend was highlighted by the ERC’s Q2 market statistics: new customers opted for the lump-sum option over the drawdown policy in a massive, and rather historic, way. In fact, more new customers (54%) went the lump-sum route than took drawdown for the first time in 13 years, with Q1 2009 being the last time this occurred.

The right of every new customer to make penalty-free repayments further cements our industry as one that puts client safety and flexibility at the heart of everything we do

What does this tell us? Well, with the world in a sorry state, it tells us people need help now, and help in a bigger way than they may have needed it before. It is, therefore, heartening that equity release can be flexible enough to provide both regular assistance and an immediate injection in the form of lump sums.

The ebb and flow of drawdown versus lump sum will surely be something to watch over the coming years, but right now let’s be happy that our market can react to the immediate problems so many people face.

Fifth pillar

Beyond stats and number crunching, Q2 was also momentous due to the launch of yet another ERC product standard.

Despite the national and international turmoil, and the pandemic being still a recent memory, our business is ready to fly again

The fifth pillar of the council’s customer safeguards — the right for every new customer to make penalty-free repayments — further cements our industry as one that puts client safety and flexibility at the heart of everything we do.

Look to the future

Ultimately, this is the time to take stock and look to the future.

These past few years have been tough for us all, and it looks like financial struggles of inflation and rising energy costs, and the long shadow of the pandemic, will continue to hit millions for the rest of this year and into the next, at the very least.

For equity release, the past two years or so have been ones of consolidation

For equity release, and indeed all areas of finance, we must look to continue to grow our business once more; expanding even further on flexibility, but never forgetting that helping people fully understand all the options available to them is at the bedrock of everything we do and must be central to every decision the customer chooses to make.

Andrea Rozario is chief corporate officer at Bower