A total £811bn worth of property wealth was available for equity release to UK homeowners over the age of 55 during the second quarter, new analysis by Canada Life has revealed.

This is an increase of over £25.6bn in three months and the first time the figure has surpassed the £800bn milestone.

The data, based on the latest Halifax Quarterly Regional House Price Index and analysed by Canada Life, showed that the average price of a property in the South East is now £396,000, creating £157.6bn of potential equity in homes across the region and making it the highest value area in the UK.

This was closely followed by London where the average house price is now £547,000 creating £146.3bn of total potential equity. Homeowners in the South East and London regions can now expect to be able to release around £138,000 and £191,000 respectively.

Homeowners in the North East and Scotland, by contrast, have the least amount of equity available per household, with £59,400 and £70,500 available on average.

Canada Life’s research also highlighted that property prices have risen by 4.8% in the North East during Q2 2022, marking the biggest jump in the UK, while the smallest growth was seen in London, at 2.3%.

“Our latest house price research shows once again the value that equity release could bring to households up and down the country,” commented Canada Life head of marketing, insurance, Alice Watson. “Everyone is noticing the increasing cost of living across the UK and people are feeling the pinch cause by rising inflation.

“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 over £800bn available across the UK, the collective pot is breaking new records every quarter.

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

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