Pensioner property equity drops just £43

A Prudential equity release study has recorded its lowest ever quarterly decline in equity values for homeowners aged 65 and over.

According to the Prudential Equity Release Index, equity for homeowners in England and Wales fell by only £43 between Q4 2008 and the first three months of this year.

This compares with an equity slump of £21,734 between Q3 2008 and Q4 2008.

"This could bode very well for people considering using their home as an asset to boost retirement income," Keith Haggart, director of lifetime mortgages at Prudential, says.

"The fall in house prices over the last couple of years appears to have slowed and, if house prices do rise in the future, the retired population could expect to see their wealth increase."

Figures are based on Prudential's analysis of data from the Office of National Statistics (ONS) Family Spending Report 2006 and the Land Registry House Price Index in August 2008.