Many Britons subscribe to the notion that equity in their property will provide an income for during their senior years, but this may be a misconceived idea, according to the Pensions Advisory Service.

Des Hamilton, technical director at the service, attributed the "vague notion" held by many people that their property's equity will be able to - at least in part - fund their retirement to the growth in residential property over the last 15 years.

He added that it may not be as easy as one may think to release equity from a property.

"It may involve substantial downsizing ... [And many] may find that the true value of their property never really produces that equity that they looked forward to," Mr Hamilton added.

According to the most recent Halifax House Price Index, house prices fell by 0.6 per cent from August to September, but increased overall by 0.9 per cent in the three-month period ending last month.