Ever since February 2009, house prices in the UK have continued to rise. Many experts claim the demand for houses has far exceeded supply, leading to month-on-month growth – with August’s growth level said to be 1.6%. Nationwide claim there has been growth of 3.2% since the start of the year – with growth expected to continue long into the new year.
A property worth £300,000 at the start of the year would now be worth £309,600. If the current monthly trend continued one would expect that property to be worth £335,173 by December. Not only does this allow homeowners to release more equity from their property – it also opens up equity release as an option for those with larger mortgages that they would like to clear from their property – an ever increasing trend given that equity release requires no monthly repayments.