Equity Release Market Benefits As House Prices Rise Again
The Nationwide have reported that house prices have risen for a seventh consecutive month, which will come as a boost to the equity release market.
According to figures released by The Nationwide the average house price in the UK is now £162,764, a 0.5% increase compared to October. However, the three-month on three-month measurement indicates a slowing in the rise of house prices.
The 0.5% increase indicates growing confidence in the market and this serves as a benefit to equity release customers.
More Equity to Release from Your Property
These consecutive increases have taken house prices up 2.7% on last year and closer to the levels seen in early 2006. The continued growth will have benefits for customers considering an equity release plan as they will be able to unlock more money from their home.
An equity release plan has the potential to let you take a lump sum or regular payments from the value of your home, and with no-negative equity guarantees on most plans, you’ll never owe more than the value of your property.
“House Prices Rising at a More Moderate Pace”
Martin Gahbauer, Nationwide’s Chief Economist, commented on the encouraging news for the market, saying:
“The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5%, leaving the average price of a typical property 2.7% higher than a year earlier. At £162,764, the average house price is at a similar level to where it was in early 2006. The 3 month on 3 month rate of change – generally a smoother indicator of the near term trend – dropped to 2.8% from 3.5% in October and 3.8% in September.
“This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows.”
With Christmas approaching, now is the ideal time to receive a no-obligation recommendation from Age Partnership because you’ll automatically be entered into our £1,000 prize draw (recommendations need to be received by December 23 2009).
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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