The total amount of housing equity available to homeowners aged over 55 now stands at an estimated £591bn
There was close to £600bn of equity available for release in homes across the UK during the third quarter of the year, an increase of £100bn compared with the previous quarter, fresh analysis from Canada Life shows.
The data, based on the latest Halifax quarterly regional house price index, shows that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £591bn, thanks in part to higher house prices.
The South East, based on the research, currently has the highest amount of potential equity available, at £123bn – £107,966 per household.
This is closely followed by London, with £114bn (£148,909 per household), and the South West, where there is £62bn (£80,032 per household) in equity available to homeowners over the age of 55.
In contrast, property owners in the North and Scotland had the least amount of equity available, at £43,042 and £48,063 per household respectively.
Alice Watson, head of marketing, insurance, Canada Life, commented: 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, Watson said. 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.
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