Huge increases in retired homeowners' property values, which have seen prices increase by over £151m a day, could see more people turning towards equity release, Prudential has suggested (reports Mortgage Solutions 17/9/07).
The provider recently launched its Pensioner Property Equity Index, a quarterly audit to monitor the value of retired property owners' homes, with research revealing that in total retired homeowners in England and Wales are worth £714m.
Ali Crossley, business director of retirement income at Prudential, commented: "We are seeing the emergence of a more holistic view of retirement savings. Equity release is definitely a consideration for many and, when homeowners see the value of their homes increasing by such phenomenal amounts, the appeal of securing an income in the form of a property pension is increasingly attractive."
However, Andrew Dixon, marketing and sales manager at home reversions provider Bridgewater, questioned Prudential's thinking, and said: "The vast majority of clients identify the need first, whether it is for emergency funds, or a lifestyle change, and then look for a way to fund it."
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