To release equity or not to release equity?

With house prices remaining stagnant for the moment, Britons considering what will happen to their assets when they are gone may be debating the worth of releasing equity from their home.

Despite increasing by one per cent over the course of 2011, prices in the property market are stationary but stable.

Commenting on the recent figures, Robert Gardner, Nationwide's chief economist, said: "The one per cent rise in house prices recorded over the past twelve months could hardly be described as a strong performance, but against a backdrop of anaemic economic growth and a deteriorating labour market, UK house prices were surprisingly resilient in 2011.”

With the value of homes not expected to rise anytime soon, releasing equity could be an option to many families wanting to see their loved ones enjoy their inheritance while they are still alive.

However, releasing equity needs to be properly researched and understood before a decision is made, as homeowners will have to deal with the consequences of their choices and do not want to get into unnecessary debt.

Published by Jessica Shervin