Equity mortgages 'best left to private sector'

The government has been urged to resist the temptation to meddle in the housing market, in news that may interest those looking to benefit from equity release mortgages in the future.

Paul Holmes, chief executive officer of Firstrung, believes the government should "stay well away" from the property market.

He suggested that the government has a vested interest in keeping house prices high because it has a large stake in the market, given the recent nationalisation of large parts of the banking sector.

But this means that house buying becomes increasingly out of reach for the average first-time buyer, he warned.

"No incentives, no initiatives - they should just let market behaviour take care of the marketplace," Mr Holmes added.

However, an equity release specialist recently claimed that the government needs to work together with the private sector in order for the industry to flourish.

Andrea Rozario, director general of Safe Home Income Plans, said the government will be able to gain a greater understanding of equity release by consulting the industry.

Equity mortgages from Ashall Glover Financial Services