'Rosy future' for equity release amid projected house price rises

The Building Societies Association (BSA) has said that house buyers expect property prices to grow, which could be good news for people aiming to secure funds through equity release plans.

On average, people expect house prices to rise by 2.2 per cent over the next 12 months, according to a survey carried out by the organisation.

However, people remain unsure as to whether now is a good time to buy a property, with a slight minority of 49 per cent agreeing that this is the case.

Paul Broadhead, head of mortgage policy at the BSA, believes it is not surprising that people do not know whether now is a good time to purchase property.

"However, despite these concerns, people still expect property prices to rise over the next year, showing that they believe that property remains a good investment," he added.

New figures released earlier this month appeared to suggest that owners of apartments have in particular seen their equity release plans boosted in recent times.

The Land Registry data showed that the average price of flats and maisonettes increased by 8.5 per cent in the 12 months to January 2010.

Ashall Glover Financial Services are equity release specialists