Rising house prices could boost equity release

Equity release could see an increase in interest as the housing market is set for another period of rising house prices, predicts an expert.

Timothy Lambert, head of consulting at Ducalian, said that the lack of proper housing options and the wave of first-time buyers trying to make the most of current government allowances and property prices were in fact pushing the costs up.

He said: "This often happens in the summer months anyway, but we are in a honeymoon period of new government and small economic growth. Prices will not rise fast and are likely to correct in the next year."

It has been recently claimed by Nationwide that May 2010 has seen house prices rise by 0.5 per cent on a month-on-month basis. The figure reflects a 12.2 per cent increase from that of February 2009.

According to the Land Registry, house prices in England and Wales are presently averaging £165,596.

Ashall Glover Financial Services are equity release specialists