Impact on equity release on regional house price variations
10 April 2019 • Equity release insights
The House Price Index Findings
The Right Move House Price Index for March 2019 shows that across the country, prices were up an average of 0.4%, however across the capital they fell by 1.1%, with a reduction of 5.5% in the inner London area. This means that if you’re thinking of releasing equity to move to a nicer home in the capital, you may find you can get more for your money than you had anticipated, or you may not need to release quite so much equity.
However, if you’re thinking of relocating to Scotland or the north west of England, you may be surprised to find your equity doesn’t go quite as far as it used to; asking prices north of the border have gone up by six times the national average, with the north west seeing an increase of eight times the national average.
What this means for capital living
‘House price variations at any given time will impact on how much money equity release companies are willing to lend against your home,’ explained Jan Johnson, director of 55+ Equity Release. ‘It seems that the uncertainty being caused by Brexit is having the greatest impact on London, however prices in the capital have been spiked for so long that this small reduction is taking off the edges of some of the extremes of the inequalities within the housing market. This is great news for anyone looking to use equity release to move from elsewhere in the country to the capital.’
Is equity release right for you?
If you’re thinking of buying a new home, equity release could be an appropriate solution, whether you want to:
- Downsize to a property of higher quality or value than your current house
- Move home without using all your savings
- Move home, but can’t get a conventional mortgage
- Buy a second home
There are lots of issues to consider when thinking about taking out equity release for the over 55s. Our advisers will help you weigh up all relevant factors, so you feel confident that you are making the right decision for your personal circumstances.