Equity available in UK homes reaches record £730bn
The amount of equity available for release in British homes owned by over 55s has reached a record high of £730bn.
Research by Canada Life shows the total housing equity available to retirees and those approaching retirement rose by £79.1bn between January to March and April to June as a result of higher house prices.
The highest amount of potential equity is in the South East where the average property price is now £353,000, creating £140bn of potential equity for the region.
This was closely followed by London which now has £136bn of potential equity.
Yorkshire now has over £43bn of potential equity available, or just under £65,000 per household. This jumps to just under £73bn for the South West, or just over £94,000 per household. In the North West there is just under £63bn available, or £70,000 per household.
London has the highest levels of average equity available per household at £161,276.
Property wealth can be released to help fund later life, or to gift to children, but advice is essential.
Alice Watson, head of marketing, insurance, at Canada Life, said: “House prices have risen dramatically over the last year which 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.
“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.”