Equity release demand may grow as annual house price gains 'continue to accelerate'

Year-on-year growth in house prices is continuing to accelerate, according to the Royal Institution of Chartered Surveyors (Rics), in news that could provide a major boost to the equity release market.

Rics stated that the year-on-year increase now stands at seven per cent despite Land Registry data indicating a "very modest" decline in February.

"Looking forward, the modest pick-up in buyer enquiries detected in the latest Rics Housing Market Survey is likely to be reinforced by the decision in the Budget to remove stamp duty on property purchases by first-time buyers," Rics chief economist Simon Rubinsohn said in a statement.

The growing demand for properties should create upward pressure on house prices, he added, although that may be partly offset by the amount of properties going on to the market.

Andrea Rozario, director general of Safe Home Income Plans, last week called on the government and industry to ensure that consumers have confidence when they opt for equity release schemes.

Ashall Glover Financial Services are equity release specialists