3 House prices increasing by £33 every day By The Bower Team / In Company News, Retirement Planning UK homeowners are enjoying an equity boost after house prices rose by an average of £6,041 in the first half of 2017. According to the Nationwide House Price Index, house prices in Britain increased by 2.45% between January and June this year – the equivalent of £33.48 a day! House price increases in first half of 2017* The average UK house price now fetches £211,301, up from £206,240 in January House prices rose by an average of £1,000 a month between Jan – June 2017 Bumper month saw average prices rise by £2,590 between May – June Annual house price growth has risen to 3.1% *Nationwide House Price Index data June 2017 What does it mean for retired homeowners? The boom we are witnessing in house prices means many UK homeowners could be enjoying a significant increase in their equity value. Many over-55s today are in or approaching retirement, perhaps earning much less than we used to do. This latest data, however, proves that our homes are still working hard for us. In fact, in the first six months of 2017 our properties each earnt a staggering £1,000 a month on average! And when we look further back, it really puts the ongoing equity boosts into perspective. For example, ten years ago in June 2007, house prices stood at £184,070. Today, at £211,301, that same average home has increased by £27,231. Remember, that calculation is without taking into account any home improvements you might have carried out to potentially increase its value further, such as adding an extension to your home. Go further back still to June 1997, and the average house price was just £59,159. Today that same average house is worth over £152,142 more in potential equity! Homeowners in need of a cash boost in later life could tap into this available equity (typically calculated by taking your home’s value today and deducting your remaining mortgage balance) to boost your retirement finances. There are two main ways to access your property wealth: Downsizing: By selling your home and moving to a smaller property or in a cheaper area Equity Release: By unlocking a cash lump sum from your home’s value without having to sell or move home Accessing your property wealth How much money could I unlock from my property?Calculate Now There are some drawbacks to downsizing, which can be off-putting for many people in later life. Selling the family home to downsize can be highly stressful, and if it’s done purely for financial reasons it can be heart breaking. Downsizing can be expensive too, something we explored in a recent article for homeowners considering this option. Alternatively, if you are 55+ and own your own home, you could unlock some of the equity in your home’s value, without having to sell your home. Also known as a lifetime mortgage, an equity release plan will allow you to access your tax-free cash to spend on anything you choose. Making home improvements, clearing the mortgage, taking more holidays or simply topping up your day-to-day finances are all popular reasons for equity release. Unlock more money from your home Rising house prices can be great news for homeowners who already have an equity release plan, too. If you’re a homeowner who already has a plan in place, but you would benefit from a further cash boost, you may find that you can unlock even more money with our specialist rebroke service. If you took out an equity release plan more than 5 years ago, there’s a good chance that a combination of higher house prices and lower equity release rates means you could unlock even more money, move your plan to a better deal with a lower interest rate, or both! For those with an equity release plan who don’t need to unlock any more money, the house price increases in recent years are still a positive. It means there could be more equity available for your loved ones to inherit in the future, once the loan plus interest is repaid. Book a free, initial no-obligation appointment with our specialists Why come to Bower? If you are thinking about utilising some of your home’s value to boost your day-to-day finances, then speaking to an independent specialist like Bower is paramount. Call Bower today on 0800 411 8668 to request your FREE equity release guide, the ideal starting point for anyone thinking about unlocking some of their home’s value. Remember, equity release will reduce the value of your estate and the amount of inheritance you leave. Your specialist will explain all of this to you during your free, no-obligation initial consultation.