The total amount of housing equity available to homeowners over the age of 55 now stands at an estimated £622bn, according to estimates published by Canada Life.

These figures, based on property values from the latest Halifax quarterly regional house price index and analysed by Canada Life, revealed that the amount of equity available has increased marginally from when the data was last analysed in Q2 2023, when it stood at £616bn.

The average price of a property in the South East is currently £385,751, creating £118bn of potential equity and making it the highest value region in the UK. This is closely followed by London, where the average house price is now valued at £539,916, creating £111bn of total potential equity in the capital.

Homeowners in these regions could now expect to release an estimated £104,153 and £145,777, respectively.

By contrast, homeowners in the North East and Scotland have the least amount of equity available per household, where £46,530 and £55,305, respectively, could be released on average.

Proposition development manager at Canada Life Home Finance, Sadna Zaman, said: “Despite the various economic headwinds and general uncertainty over the past year, property prices have remained firm, and even edged up in some areas. This resilience in the property market continues to create significant housing equity which can be released by homeowners looking to improve their retirement prospects.

“The latest FCA retirement income data just released shows the most common withdrawal rate for pensions for pot values up to £250,000 is 8%. People may be deliberately depleting their pensions as part of well-informed financial plans, but it may well be that some will be left wondering where their pensions have evaporated too in due course.

“While I certainly wouldn’t want to see equity release seen as a purchase of last resort, the product will continue to remain a key part of later life planning.”

---