More than three-quarters of advisers believe more clients will use equity release to meet their basic needs over the next year, according to a survey by More2life.

Four out of 10 advisers have reported a drop in equity release cases since the start of the pandemic compared to previous levels.

But almost the same proportion of advisers report seeing more equity release cases over this period and 26% report no change.

Meanwhile, 59% of advisers think a greater number of their clients will enquire about equity release as a means to boost their retirement income over this period. 

The lender believes that the impact of Covid-19 on the pension pots, careers and incomes of thousands of older borrowers is likely to be driving this interest.

More than half of advisers report more clients using equity release to help family members onto the property ladder over the past year, potentially as a result of the stamp duty holiday.

But older people also sought to help family members who were struggling financially as 34% of advisers reported more clients borrowing for this reason.

More2life chief executive Dave Harris says: “The later life lending market is facing an interesting conundrum – we’ve worked hard to educate people on the role that housing equity can play in retirement, but we are also aware that, now more than ever, we need to encourage people to avoid knee-jerk reactions and make smart sustainable choices for both the long and short term.

“That almost 80% of advisers expect to see more customers looking to equity release to support basic needs in retirement during the next year is not surprising.   

“We have told them that later life borrowing is a safe viable option and people have listened.  

“What we need to do now as an industry is to ensure over-55s get high quality advice that helps them find the best solution for their specific needs – whether this involves an equity release mortgage or an alternative option.

“With a growing number of people turning to advisers for guidance on funding needs in retirement, the later life market must ensure that it continues to support advisers with the very best range of products and tools, so they are well-placed to support as many borrowers as possible throughout this turbulent time.”