Will house price increases rekindle interest in equity release plans?

The amount of money available to British homeowners through equity release may increase as a result of house price rises.

House prices rose by 2.1 per cent in January to £165,088, according to new figures released by the Land Registry.

The highest annual price change was in London, where the value of property rose by 10.5 per cent, which will no doubt come as good news to those homeowners considering equity release.

Commenting on the figures, chief economist at the Royal Institution of Chartered Surveyors Simon Rubinsohn explained that data highlights the significant regional discrepancies in the UK.

He said: "Following the rise of 3.9 per cent in January prices in the capital are now just five per cent away from the 2007 peak.

"By way of contrast, the north-east was the English region seeing the biggest fall in prices in January."

He added that recent figures released by Nationwide cast some doubt over whether this increase can be sustained.

Equity release plans from Ashall Glover Financial Services