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.
Related posts:
[...] month we reported on January’s modest house price rise and how it is slowing in-line with industry predictions of a stable year. This stability could [...]
Homeowners May Still Benefit from Equity Release Schemes Despite House Price Fall
2 Mar 10 at 1:44 pm
[...] with the trend of recent months, further house price rises ushered in February; although the percentage increase was minimal. The Nationwide and Halifax [...]
Getting the Right Equity Release Advice This Month
3 Mar 10 at 10:06 am