There was almost £600bn of equity available for release in UK homes in Q3 2020, an increase of £100bn from Q2, analysis from Canada Life has revealed.
The figures, based on the latest Halifax quarterly Regional House Price Index, reveal that the total amount of housing equity available to homeowners aged over-55 now stands at an estimated £591bn.
An increase in loan-to-values across Canada Life’s product range and a marginal increase in house prices can be attributed to the rise in the amount of equity available.
Higher house prices result in the South East having the highest amount of potential equity available, standing at £123bn, the equivalent £107,966 per household. This is closely followed by London, with £114bn and the South West, where there is £62bn in equity available to homeowners over the age of 55.
In contrast, homeowners in the North and Scotland had the least amount of equity available, with just £43,042 and £48,063 per household respectively.
Alice Watson, head of marketing – insurance, Canada Life, said: “Property wealth continues to be an increasingly important source of later life funding, whether it’s used to finance home improvements, support family members or improve quality of life in retirement.
“The substantial concentration of wealth in UK property and our increasingly competitive product LTVs means there’s now more equity available to release for those looking to access money from their home. As a result, equity release could play an even greater role in retirement as the over-55s look for financial security in later life.
“The diverse nature of equity release means that it can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility to suit client’s individual circumstances.”
This post has originally been featured in Property Wire.