Equity Release Customers Encouraged by New House Price Increases
Potential equity release customers were boosted this week by the news that house prices have returned to the increases seen at the end of 2009 and start of this year.
Following February’s slight drop in the average cost of a UK house, March has almost reversed the trend with a 0.7% rise. This leaves the average UK house at a value of £164,519.
Potential to Release More Equity
According to Nationwide’s figures the average UK home is now 9% higher in value than 12 months ago, adding a potential £14,000 to the value of most properties. This could have considerable incremental benefit for some customers considering an equity release scheme.
Because an equity release scheme has the potential to release a tax-free lump sum from the value of your property, the higher the value of your home the more you could benefit from equity release.
Despite the encouraging news coming from the Nationwide it is still believed that the property market has become more subdued. Martin Gahbauer, chief economist for the Nationwide said:
“The smoother three month on three month rate of inflation edged down further from 1.8% in February to 1.6% in March. At £164,519, the average price of a typical property is 9.0% higher than a year earlier.
“The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
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[Reply]
Tashina Drisko
19 Jun 10 at 5:42 am