Homes hold £500bn of equity to release
There is almost £500bn of equity available for release in UK homes owned by over 55s, analysis from Canada Life has found.
Driven by higher house prices in the South of the country, those in the South East and London have the highest amounts of average potential equity available, standing at £90,142 and £125,883 per household respectively.
In the South West, where there is £51bn of equity available to release overall, this works out as £66,432 per household.
In contrast, homeowners in the North and Scotland had the least amount of equity available, with £37,353 and £39,531 per household respectively.
Alice Watson, head of marketing, insurance, Canada Life said: “Over 55s now account for 30 per cent of the UK population and 56 per cent of households – and the concentration of wealth in UK property continues to rise.
“Property wealth has the potential to play a huge role in helping to meet the financial needs of those in later life – covering the cost of care, financing home improvements, or being used to improve quality of life.
“As an industry, it’s vital that we highlight how equity release can be used to meet these needs, and this is where advisers have a significant role to play.
“Not only are these professionals well placed to help customers find the best-suited product for their unique circumstances, but they can demonstrate the role that equity release can play as part of any retirement plan.”