Financial Guidance and Claims Bill [Lords]

Debate between Crispin Blunt and Mark Tami

3rd reading: House of Commons & Report: 3rd sitting: House of Commons
Tuesday 24th April 2018 Commons Chamber

[Crispin Blunt]

I am grateful to the hon. Gentleman, and I agree. He will note the very distinguished role that his predecessor played in the whole business of promoting equity release. It ought to be a really major option given the construction of people’s resources and where they sit on the scale of property ownership in the UK. We need to be clear about how important an asset it is and how important it is to make sure that this industry has the opportunity to give the best possible service to people in their life plans.

Consumers must obtain qualified financial and independent legal advice before they confirm their decision to go ahead and purchase any equity release product. Guarantees include the right to remain in the property for life or until moving into long-term care. Another key safeguard provided by members of the Equity Release Council is the “no negative equity” guarantee, whereby the repayment of the loan is never greater than the value of the home.

A major reason why the single financial guidance body signpost should include housing wealth is the growth in the equity release sector. Homeowners released £3 billion worth of equity in 2017, with 37,000 new customers signing up for equity release products for the first time.

[Mark Tami (Alyn and Deeside) (Lab)]

The hon. Gentleman keeps saying that this is about releasing equity. What people are actually doing is borrowing against the perceived wealth of the property.

[Crispin Blunt]

They are not borrowing against the perceived wealth of the property—it is the actual wealth of the property. If someone is in a position of planning for their retirement and they do not have an adequate pension pot, and given the scale of the imbalance between people’s assets in property as opposed to the pension provision they have made, it is obvious that, in making the assessments for their retirement, they should consider accessing the wealth they have accrued that is in their home.

With 37,000 customers signing up for equity release products for the first time in 2017, the number of these products has also risen enormously over the last decade—by 225%—and 78 product options with the necessary range of flexibilities are now available. This can only improve and grow as the industry develops. Consumers utilise equity release for various reasons, such as paying off a mortgage, making adaptations to the home, boosting retirement income, or as a means of providing deposits to children and grandchildren to enable them to take their first step on the housing ladder. Equity release can help in meeting some of the challenges in social care and in housing.

We should be more ambitious, ensuring that the new body signposts solutions such as equity release to all those we represent who might really benefit from unlocking the main source of their wealth overall, which will be the equity in their home. I look forward to hearing from the Minister how we are going to make a reality of that in practice through the guidance.

Oral Answers to Questions

Debate between Crispin Blunt and Mark Tami

Tuesday 28th June 2011 Commons Chamber

[Mr Blunt]

What is in the Act is that date, as I understand it, and the forward-looking scheme will operate from there. If it is not on the face of the Act, it was the clear statement of the Government at the time, and the policy of the then Opposition was to support it, so I can confirm that it would be our intention for any forward-looking scheme to deal with victims from that time.

[Mark Tami (Alyn and Deeside) (Lab)]

14. Which organisations his Department has consulted on future procedures for remanding defendants in custody.

[The Parliamentary Under-Secretary of State for Justice (Mr Crispin Blunt)]

More than 1,200 individuals and organisations contributed to the consultation on the Green Paper, “Breaking the Cycle: Effective Punishment, Rehabilitation and Sentencing of Offenders”. Numerous criminal justice organisations commented on the remand proposals in the Green Paper, both in relation to restricting the availability of remand in custody and to new arrangements for defendants under 18. The latter were also discussed in a series of consultation events that the Youth Justice Board undertook following publication.

[Mark Tami]

What does the Minister say to the senior judges who rightly point out that it is wrong to link decisions on remand with the eventual sentence received?

[Mr Blunt]

What the hon. Gentleman has to understand is that in magistrates courts 10,098 people were remanded into custody, a very substantial number of whom did not receive a custodial sentence, so we have to deal with that reality.