LONDON, ENGLAND, September 10, 2009
/24-7PressRelease/ -- According to the Prudential's Equity Release Index*, Homeowners in England and Wales aged 65 and over have retained GBP611billion of equity in their property - with a further GBP43bn held in Scotland - as the housing market begins to show signs of stabilising following two years of decline,.
The Index also shows modest gains for homeowners aged over 65 in Wales, the West Midlands, London and the North West.
In Wales, the over-65s saw values rise by GBP3448, followed by London's over-65s who gained GBP3296, while in the West Midlands retired homeowners gained GBP2789 and the North West saw increases of GBP818.
Homeowners in Scotland aged 65 and over have retained GBP43billion of property
equity and saw modest gains in the second quarter of 2009, with an average increase in property values of GBP5235 since March, although the total value of property equity for the over-65s is still more than GBP3 billion lower than it was a year ago.
The Prudential Equity Release Index shows that, in the second quarter of 2009, Scottish over-65s saw the value of the equity in their homes increase by 3.7%. Over the same period, the equity in homes owned by over-65s in England and Wales remained almost level, decreasing by just 0.03%.
The picture across England and Wales as a whole is one of stabilisation, with property equity for the over-65s falling by less than GBP43 since February - the lowest fall recorded by the Prudential Equity release Index.
The recent fall of just GBP43 contrasts sharply with the period between October 2008 and February 2009 when property equity in England and Wales for homeowners aged 65 and above dropped by an average of GBP21,377.
Property equity can provide a valuable source of
retirement funds, especially against a backdrop of low interest rates and equity price falls in the past two years which have hit pensioners' non
pension savings.
North East homeowners aged 65 and above saw the highest decline for any region in England and Wales with equity in their homes falling by GBP4,857 compared with GBP18,721 from October 2008 to February 2009, while those in Yorkshire and Humberside experienced a decrease in value of GBP4,209, compared with GBP13,028 from October 2008 to February 2009.
Keith Haggart, director of Lifetime Mortgages at Prudential, said: "A good many pensioners will be cheered by the news that property values appear to be stabilising and in some parts of the country are even increasing. This could bode very well for people considering using their home as an asset to boost retirement income."
Notes to editors
* Prudential's Equity Release index tracks the amount of equity held in property by people over 65 years old in England and Wales. Figures are based on Prudential's analysis of data from the ONS Family Spending Report (2006), the Land Registry House Price Index (August 2008) and GfK NOP (2007). Specifically, weighted number of households data is taken from the ONS Family Spending Report 2006. Home ownership data is taken from the NOP data. Average house price per region is taken from the Land Registry Index.
About Prudential
"Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance,
equity release, annuities (including an income drawdown option),
pension plan options and investment products like the unit trust and tools, such as the tax calculator. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454.
Website:
http://www.pru.co.uk/---
Press release service and press release distribution provided by http://www.24-7pressrelease.com# # #
Press Release Keywords:Read more Press Releases from Jonathan Akerman:Other Press Release Headlines:
