More than £800bn of equity was available for release in UK homes during the second quarter of this year, which is the first time the value has exceeded this milestone.
That is according to new analysis by Canada Life, which reveals that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £811bn, up £25.6bn from the first quarter.
The figures – based on the latest Halifax quarterly regional house price index – also show that the average price of a property in the South East is now £396k, creating £157.6bn of potential equity release and making it the highest value region in the UK.
This is closely followed by London, where the average house price is now £547k, creating £146.3bn of total potential equity. Homeowners in these regions can now release around £138k and £191k, respectively.
“With over £800bn available across the UK, the collective pot is breaking new records every quarter,” said Alice Watson, head of marketing for insurance at Canada Life. “The diverse nature of equity release products mean that they can be used to meet a range of evolving needs.
“Whilst releasing equity from a property remains a very significant and individual decision it has a valuable role to play in helping today’s homeowners live the retirement they’ve worked for or to provide for other family members at difficult times.”
The analysis also show that homeowners in the North East and Scotland have the least amount of equity available per household, with an average of £59.4k and £70.5k available, respectively.
A full regional breakdown is shown below:
Property prices rose by 4.8% in the North East during the second quarter, which was the biggest jump in the UK, while the smallest growth was seen in London, on 2.3%.
“Everyone is noticing the increasing cost of living across the UK and people are feeling the pinch cause by rising inflation,” Watson continued. “Our latest house price research shows the average sums that homeowners could expect to receive if they explored some of the value locked up in their property.
“With the right advice, equity release has proven it can help people to access their property wealth flexibly and safely.”
Table credit: Canada Life
Image credit: iStock
Author: Chris Seekings