Aviva, a major financial services group in the UK, has reported a 54% drop in equity release sales in the first half of 2024. This means they sold £114 million worth of equity release plans, compared to a much higher figure last year. They say this is due to “lower levels of market activity”.
Why Are Sales Down?
The equity release market as a whole had a tough time last year, with 47% fewer new plans agreed. This is partly because the Bank of England increased interest rates 14 times between December 2021 and last August. This has made borrowing more expensive, which can impact people’s decisions about equity release.
What Does This Mean for You?
Aviva says it’s being careful about pricing to make sure it’s making a good return on its investments. They are still the UK’s largest provider of individual annuities, so they have a big stake in the market.
Here’s the key takeaway: Although equity release sales are down, it’s still a popular option for people in retirement. If you are thinking about equity release, it’s a good idea to talk to a financial advisor to understand how the changing market might affect your choices.
Aviva’s Overall Performance
Despite the drop in equity release sales, Aviva has had a good first half of 2024 overall. They reported a strong profit, driven by growth in their general insurance business.
It’s good to know that Aviva is still a strong and successful company, even if they are seeing some challenges in the equity release market.