There was almost £600bn of equity available for release in UK homes in the third quarter, an increase of £100bn from Q2, new analysis from Canada Life has revealed.
The figures, based on the most recent Halifax quarterly regional house price index, showed that the total amount of housing equity available to homeowners over the age of 55 now stands at an estimated £591bn.
Canada Life suggested an increase in LTVs across its product range, as well as a marginal increase in house prices, can be attributed to the rise in the amount of equity available.
Higher house prices have resulted in the South East having the highest amount of potential equity available, standing at £123bn, or £107,966 per household. This is closely followed by London, with £114bn (£148,909 per household), and the South West, where there is £62bn (£80,032 per household) in equity available to homeowners over the age of 55.
By contrast, Canada Life highlighted that homeowners in the North and Scotland had the least amount of equity available, with just £43,042 and £48,063 per household respectively.
“Property wealth continues to be an increasingly important source of later life funding, whether it's used to finance home improvements, support family members or improve quality of life in retirement,” said Canada Life head of marketing, insurance, Alice Watson.
“The substantial concentration of wealth in UK property and our increasingly competitive product LTVs means there’s now more equity available to release for those looking to access money from their home. As a result, equity release could play an even greater role in retirement as the over-55s look for financial security in later life.
“The diverse nature of equity release means that it can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility to suit client’s individual circumstances.”
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