Homeowners 'should not worry about equity release'
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Posted: 28th Aug 2008
Homeowners should not be concerned about falling equity in their property, according to Prudential.
The financial services company's director of lifetime mortgages Keith Haggart said that in the "context of equity release" people "shouldn't be worried at all".
This month Prudential reported that homeowners aged 65 and over had £726.43 billion worth of equity in their homes.
The value of property equity in this age group fell by £7.7 billion between February 2008 and May 2008.
Mr Haggart said: "There is an expectation of what we are going to get and valuers today reflect what they believe the property is worth.
"Obviously with supply and demand going the other way around, the values will reflect any softening of the market."
This month, Nationwide put the average price of a house in the UK at £164,654 – down by 1.9 per cent from the previous month and 10.5 per cent from the same point last year.
The double digit annual fall is the first of its kind since the fourth quarter of 1990. 
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