More Good News For Potential Equity Release Customers
The trend of house price rises continued in May 2010 with the Nationwide reporting a 0.5% increase during the month. This could encourage some homeowners to consider an equity release scheme.
The 0.5% increase took the average price of a UK home to £169,162 which is £15,000 higher than the same time a year ago. This would mean that some homeowners could get more from an equity release scheme due to the higher valuation.
Further Growth Possible
The monthly increase was tempered by a drop in the year-on-year valuations. In April, house price inflation was at 10.5% but the Nationwide only reported a 9.8% increase in May.
However, on a more encouraging note for those considering an equity release scheme, according to the Nationwide’s chief economist Michael Gahbauer, these house price rises could be set to continue.
“Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months.
“The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.”
An equity release scheme has the potential to help homeowners release a tax free, lump sum from the value of their homes to supplement income in retirement.
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