Equity available for release in UK homes exceeded the £650bn mark for the first time in the first quarter of 2021, new analysis from Canada Life has revealed.
This was an increase of £50bn based on the final quarter of 2020.
The figures, based on the latest Halifax House Price Index, showed that the total amount of housing equity available to homeowners aged 55 and over now stands at an estimated £650.7bn.
Canada Life suggested that higher house prices in the South East, London and the South West have driven the surge in potential available equity. The average price of a property in the South East is now £345,000, creating £125bn of potential equity for the region or just over £110,000 per household, which is the largest available equity by region in the UK. This was closely followed by London which now has £123bn of potential equity, or £161,276 per household.
Property prices in Wales and Scotland have also witnessed the largest percentage growth in house prices in Q1, up by 3.6% and 2.8% respectively. Wales now has almost £25bn of potential equity available, or just under £60,000 per household while Scotland has just over £40bn available, or £58,000 per household.
The analysis also revealed that homeowners in the North East and Yorkshire had the least amount of equity available, with £47,421 and £56,778 per household respectively.
Canada Life head of marketing, insurance, Alice Watson, said that the equity release market has shown “great resilience” over the last year.
“Homeowners across the country are seeing increasing strains on their personal finances whether that’s from redundancy, rising living costs or caring responsibilities,” Watson said. “The diverse nature of equity release products mean that they can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility.
“Fewer people are able to follow the ‘traditional’ journey of retiring with a comfortable pension and no mortgage debt, and as a result, the retirement market is undergoing a significant change.
“Whilst releasing equity from a property remains a significant decision, personal finances are likely to continue being exacerbated by the pandemic and, with the right advice, equity release has proven it can help people to access their property wealth flexibly and safely.”
Latest News
-
Average mortgage rates creep up for first time in eight months
-
SIPP withdrawal requests jump 33% ahead of Autumn Budget
-
44% of first-time buyers looking at new builds, study finds
-
Barclays and TSB partner with housebuilders to create Rezide Equity Loan
-
Tories pledge to scrap stamp duty on primary residencies
-
Economic climate taking emotional toll on three in four consumers
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories