New House Price Rise Could Boost Equity Release
Rising house prices could allow homeowners to benefit further from equity release schemes. House prices continue to rise with October’s 2% increase marking the first time that prices have surpassed the levels at the same stage of the previous year.
The Nationwide have reported this increase that has seen the average price of a UK house reach £162,038. This could be beneficial for homeowners considering an equity release plan as they may be entitled to more equity.
Growing Market Signals Growing Confidence in Equity Release
The Nationwide identified that the growth in the market is slowing down but there was still a small increase. This is now the sixth consecutive month that house prices have raised in the month-on-month measurement and this will no doubt support a growing equity release market.
Earlier in October, Key Retirement Solutions reported that equity release plans taken out in the third quarter of the year had increased demonstrating a growing confidence in the market. This upward curve coincides with the strongest growth in the housing market for 19 months.
The increased valuation of most houses has prompted homeowners to take out an equity release plan to supplement their income as they approach or enter retirement.
Equity Release Can Supplement Retirement Income
An equity release scheme has the power to unlock a lump sum or regular payments to complement income in retirement. This is proving especially valuable in a time of recession. Earlier in the week it was expected that the UK would come out of recession but forecasts were premature. This could lead to more people considering equity release.
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