The Council of Mortgage Lenders has called for a co-ordinated effort by government, regulators, finan...
Equity release enables older home owners to essentially take out a second mortgage that can be used to provide an improved standard of living.
The CML says that the rapidly ageing UK population means the time to set rules in place to develop standardised products for this market is now, not in the future.
The last decade's rapidly rising property prices has left many older people with significant wealth tied up in property, but without mechanisms in place to release that wealth in another guise.
UK homeowners hold £400bn worth of property, but only 1% of that is being drawn on to provide an income, according to CML figures.
CML's Deputy Director General Peter Williams said is was important to establish standards of value for money and risk in order that potential customers feel confident in any products that came to market.
"The potential for equity release is huge, with room for all lenders to participate," he said.
"This would ensure competitiveness in the market, to the benefit of consumers. As long as the risks are properly addressed and the limitations clearly explained, the development of suitable equity release products could enhance the lives of large numbers of older people."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected