House boom locks up UK wealth by Finance News Bulletin

Published: 20/04/07

News Companies & markets Investing Power collection Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones Retirement economy & banking praise & loans Small business Tax & wills Message boards Money blog Tools & calculators inquire an expert Guides Compare & pay money forSoaring house prices have substantially increased the national riches locked up in bricks and mortar in the past two years

A rapid MONEY MAKEOVER If you only have one minute to learn how to sort your money, forget the rest and read this>> Our 8-step planThe equity held by homeowners has climbed by an standard of 37% in that time, according to a surveyThe increases denote more than semi of all household wealth – 55% - is now related to assets, led by property, rather than investments and pensionsEquity is defined as the hole between what a property would be worth if sold tomorrow and the outstanding mortgage

The huge sums tied up in property give details why owners are increasingly treating their home as a bank that can be tapped into when the need arisesMore and more are extending mortgages and taking out secured loans against their homes to fund universal living expenses or building work, as well as major purchases such as carsA figure of older mortgage holders are taking out loans against their property to use as a deposit to allow their children to pay money for their own homeIndustry information published this week show homeowners released £14

6bn of the wealth safe up in their properties in the final three months of 2006A table compiled by the Prudential insurance corporation and researchers at Datamonitor details how the nation's equity soared between 2004 and 2006There has also been a spectacular rise of 70% in Wales, taking the shape to £116,267 Average evenhandedness in Scotland rose by more than £27,000 or 55% over the two existence to £78,793, while the figure for Yorkshire and Humberside is put at 50%

In the East Midlands, evenhandedness has soared by 45% while in the neighbouring West Midlands it rose just 25% to £103,772inhabitants in the South-East have the highest standard amount of equity in their house, at £210,077 - an increase of £41,570 or 246%The increase in London is a comparatively modest 18

6%, taking the shape to £169,477 The rise in the North-West was 12% and 107% in the South-WestAli Crossley, the Pru's manager of lifetime mortgages, supposed: 'It is interesting to see how important property has become in constituting our main basis of financial wealth

'A separate study suggests money on loan against a home to convert a loft is usually a very sound investmentResearch by coalition & Leicester claims spending £23,000 on a dormer loft to make an extra bedroom and bathroom can add up to £100,000 to the value of a propertyThe so called wealth in property is hypothetical, not actual like the wealth in savings - it is the perceived worth of the property, however there is no guarantee that it will realise that worth© 2007 Associated Northcliffe Digital Ltd Terms Privacy rule Advertise with us LoansCardsMortgagesInsuranceCompare the best deals around with This is Money

Please decide a loan£ Select a loan term 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 existence GO New praise cardPick your favoured card offer Please decide 0% introductory rate No annual fee Cashback Loyalty scheme All of the above GO Balance transferPlease select a kind of insurance Life insurance Home and contents Car stop working services physical condition - medical physical condition - dental Travel Pet - dog Pet - cat GO get back ALL FEESAdvice/template letters:BUY-TO-LET TIPSThinking about investing in property This is Money has the most excellent information

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