New data reveals that the total amount of housing equity available to homeowners aged over 55 in England, Scotland, and Wales stood at £616bn in Q1.
According to figures based on the Halifax quarterly regional house price index and analysed by Canada Life, this amount has fallen from £624bn in Q4 2022.
Unsurprisingly the South East has the highest value of equity available at £119bn, with an average property price of £388,000.
London follows closely with an average house price of £537,000, amounting to £111bn of total potential equity. Homeowners in these regions can expect to release around £105,000 and £145,000 in equity, respectively.
In contrast, homeowners in the North East and Scotland have the least equity available per household, averaging £45,000 and £54,000.
Property prices fell across all regions during Q4 2022, with the South East and Wales experiencing the most significant drops of (-1.8%) and (-1.6%), respectively.
Sadna Zaman, proposition development manager at Canada Life Home Finance, commented on the findings: “While the amount of equity release available has fallen as a result of strong economic headwinds and the slowing of the UK housing market, in today’s challenging environment, equity release can provide both flexibility and certainty.
“For older homeowners looking to free up cash from their homes, equity release can be used to meet their evolving needs in later life, whether that be to supplement their income, pay for the cost of care or make home improvements.”
