Over £760bn of equity was available for release in UK homes in the fourth quarter of 2021, figures published by Canada Life have indicated.

This is an increase of over £25bn in three months and the first time it has exceeded this milestone.

The figures, based on the latest Halifax House Price Index and analysed by Canada Life, revealed that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £766.3bn.

According to the research, the largest available equity by region in the UK can be found in the South East where the average price of a property sits at £374,000, creating £148.9bn of potential equity for the region. This was closely followed by London where the average house price is now £525,000 with £140.5bn of total potential equity.

Property prices in Wales, the North West and South West saw the largest growth in Q4, growing by 5.8%, 5.0% and 4.2% respectively. The Canada Life analysis revealed that Wales now has £29.9bn of potential equity available, or almost £72,000 per household, while in the North West there is now almost £66bn available, equating to £74,000 per household, and in the South West £77.8bn of available equity, leading to £100,000 available to release per household.

Canada Life head of marketing, insurance, Alice Watson, suggested that Q4 showed “incredible growth” in property prices across the country.

“As a result homeowners have greater opportunities to support their retirement planning and aspirations with their growing household equity,” Watson said.

“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 long and hard for.

“With the right advice, equity release has proven it can help people to access their property wealth flexibly and safely.”

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