Almost £730bn of equity was available for release in UK homes during the second quarter, the first time it has exceeded this milestone.

New analysis from Canada Life confirmed this is an increase of almost £80bn compared to Q1.

The figures, based on the last Halifax House Price Index, revealed that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £729.8bn.

Canada Life’s analysis showed the average price of a property in the South East is now £353,000, which has created £140bn of potential equity for the region, the largest available equity by region in the UK. This was closely followed by London which now has £136bn of potential equity.

Homeowners in the North East and Yorkshire had the least amount of equity available, with £53,546 and £64,830 per household respectively. This could be attributed to higher levels of homeownership in the regions.

Canada Life head of marketing, insurance, Alice Watson, said that a dramatic rise in house prices over the last year has naturally led to more equity being available across the country.

“As a result, property wealth is increasingly being used as another element of retirement income, alongside existing savings,” Watson commented. “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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