Equity Release Market Benefits From House Price Rise
For the seventh consecutive month the average price of a UK house has increased, which will offer further encouragement to homeowners considering an equity release scheme.
This latest increase is more modest than the previous six months, showing a 0.6% rise in January, according to the Halifax. However, this latest growth, which sees the average UK house valued at £169,777, will allow homeowners to release more from their property with an equity release scheme.
Growth in the Housing and Equity Release Markets
Following this positive news, house prices are now 3.6% higher than they were at the same time last year and an impressive 9.9% up on the April 2009 crash. Yet this modest increase suggests that industry predictions of prices staying flat in 2010 appear to be accurate.
These constant increases could have been a contributing factor in the stabilisation of the equity release market also. In January it emerged that the number of equity release schemes taken out in the fourth quarter of 2009 – a notoriously difficult quarter for the market – were close to breaking even against the year previous.
More people are returning to equity release schemes as confidence grows in the market and values of properties increase.
“These latest figures are good news, more funds could now be available”
Last month Dan Baines, Sales and Marketing Director at Age Partnership, commented that he felt house price rises were only going to benefit customers. He said:
“Many mature homeowners are already sitting on a wealth of home equity that outweighs other provisions that they have made for their retirement. These latest figures are good news, meaning that more funds could now be available.”
Although signs suggest the dramatic rises are easing, continued demand for housing should ensure the market stabilises.
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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