Rising house prices create almost £800bn of potential equity

Almost £800bn worth of equity was available for release in UK homes in the first quarter, analysis by Canada Life has revealed.

The figures, based on the latest Halifax quarterly regional house price index, showed that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £785.4bn.

This is an increase of over £19bn in three months and the first time it has exceeded this milestone.

Canada Life highlighted that the average price of a property in the South East is now £385,000, creating £153.5bn of potential equity and making it the highest value region in the UK. This was closely followed by London where the average house price is now £534,000 creating £143.1bn of total potential equity. Homeowners in these regions can now expect to be able to release around £135,000 and £187,000 respectively.

Homeowners in Wales and Yorkshire have the least amount of equity available per household with £55,800 and £67,200 available on average. Furthermore, property prices increased by 4% in the East Midlands – the biggest jump in the UK – leading to almost £50bn of available equity and on average, £82,000 per household.

“Everyone is noticing the increasing cost of living across the UK and people are feeling the pressure of rising inflation,” said head of marketing, insurance, Canada Life, Alice Watson,

“Our latest research shows the sums that homeowners could expect to receive if they explored some of the value locked up in their property. With almost £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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