Long Term Housing Market Shows Encouragement
Houses prices dropped for the second consecutive month in August but the long-term outlook for the housing market shows promise. Homeowners approaching retirement will be encouraged by this news if they are considering an equity release scheme in the future.
The Nationwide reported that August saw 0.9% decrease in house prices, which follows on from the 0.5% drop in July. This is the first consecutive decline in house prices since early 2009 and leaves the average price of a UK home at £166,500 according to the Nationwide.
22% Growth in House Prices by 2015
Despite the recent encouraging trend of house price growth reaching a plateau, the overall outlook looks better. According to the National Housing Federation (NHF) house prices will have improved by 22% by 2015. Although this is some way off, after a slight percentage drop next year, house prices will grow steadily.
This could therefore benefit homeowners who are approaching retirement and considering an equity release scheme. This could be particularly prevalent with retirement ages expected to be pushed back in the coming years.
Equity release schemes have the potential to unlock a tax-free lump sum from the value of your home to supplement income in retirement.
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