House Prices and Equity Release – Useful information in April 2025
In April 2025, UK house prices fell a little. Nationwide said prices dropped by 0.6% in April compared to March. This means the average UK house now costs £270,752 which is still 3.4% higher than last year.
So, even though prices dipped slightly this month, they are still going up overall. And if you’re over 55 and thinking about equity release, this could be useful.
What Is Equity Release?
Equity release lets older homeowners take out money from their home without having to move. This can help you:
Make your home more comfortable
Pay for big costs
Help your children or grandchildren
You don’t need to make monthly payments, and the money is usually paid back when your home is sold after you pass away or move into care.
Why House Prices Matter
If your home is worth more, you may be able to take out more money using equity release.
Let’s say your home was worth £250,000 a year ago. With a 1.3% rise, it might now be worth about £253,250. That increase could mean extra money available to you. However please note the more you release, the more it will impact on future inheritance and the equity remaining in your home.
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More from Nationwide’s April Report
House prices dropped by 0.6% in April
Prices are still 3.4% higher than in April 2024
The average UK home now costs £270,752
The market is still recovering and has stayed fairly stable since late 2023
Economists expect things to improve later this year if interest rates come down
What to Watch Out For
Equity release is a big decision. There are some things to think about before you go ahead:
You may leave less money to your family when you pass away, as interest compounds on any funds released.
It could change your benefits, like pension credit or council tax support
It can be expensive to change your mind after you’ve signed up
That’s why you should always speak to a financial adviser who knows about equity release. They can explain how it works and whether it suits your needs.
Final Thoughts
Even with a small drop in April, house prices are still higher than last year. This means your home might be worth more – and that could give you more choice with equity release. But remember, this is a long-term decision, so get good advice and think carefully.
