Stabilising housing market ‘bodes well for equity release customers’

Posted 25/08/2009

Those considering equity release are likely to welcome the recent levelling out of the housing market in the UK, it has been claimed.

According to Keith Haggart, director of lifetime mortgages at Prudential, the news that prices are starting to creep up in some areas of the property market will benefit those looking to supplement their retirement income.

Wales experienced the largest increase in the value of home equity for homeowners between the February 2009 and June 2009 indexes.

“This could bode very well for people considering using their home as an asset to boost retirement income,” he said.

The expert said that for many older homeowners, equity release is an attractive way to add to their income when they are under financial pressure.

He explained that selling a home is an unattractive option to many, particularly as older equity release customers are likely to have formed an “emotional” attachment to their property.

This comes after a survey by the Equity Release Solicitors Alliance found that the number of single homeowners opting for equity release has risen 11 percentage points since 2005.