Some positive reports on rising house values – but no significant optimism about the housing market
Written in line with our editorial policy.
In the equity release sector, we naturally carefully monitor what’s happening to the housing market. So, what’s the latest news on UK house values?
The amount of money you can release through equity release is based on a percentage of your home’s value. Recent falls in average house prices have therefore reduced how much tax-free cash consumers can release with an equity release plan.
But are there the first tentative signs that the housing market could be set for a recovery?
The Guardian’s Phillip Inman wrote on 14 February that: “A slowdown in the housing sector in 2023 triggered by rising mortgage costs may be over, and a downward trend in house prices has bottomed out.”
He was basing this on figures from the Office of National Statistics (ONS) showing that the decrease in average home values for the 12 months to December 2023 was 1.4%. This compared to a 2.3% annual fall recorded in November.
He went on to talk about the way lower mortgage interest rates than a year ago could release pent-up demand in the market, fuelling an increase in property prices this year.