Prudential: Equity release market not affected

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Prudential: Equity release market not affected

Thu 28th Aug 2008

The ongoing decline in house prices has had little impact upon the UK's equity release market, according to Prudential's lifetime mortgages director Keith Haggart.

Equity has fallen dramatically among over-65s in recent months and Mr Haggart believes this is down to a general reduction in house values, which has been measured at an annual rate of 10.5 per cent by Nationwide in its latest house price survey.

Despite this, there has been no decrease in the number of people looking into equity release, Mr Haggart said, with the only real difference being how happy people are with the valuation of their properties.

"We have seen no direct impact from a business point of view in terms of inquiries," he remarked, adding that "one or two people have been slightly disappointed by the evaluation" they have received.

Prudential revealed earlier this month that there had been a £7.7 billion decrease in pensioner house equity between February and May of 2008.

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