"As a result, property wealth is increasingly being used as another element of retirement income, alongside existing savings."
This is an increase of almost £80 billion when compared to the previous quarter. 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 £729.8 billion.
The average price of a property in the South East is now £353,000, creating £140bn of potential equity for the region, the largest available equity by region in Britain.
This was closely followed by London which now has £136bn of potential equity. Property prices in Yorkshire, the South West and the North West also grew significantly in Q1, growing by 3.9%, 3.7% and 3.4% respectively. 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.
Scotland and London saw the smallest growth of 1.2% and 1.4% respectively. Despite this, London still enjoys the highest levels of average equity available at £161,276 per household. London is followed by the South East (£110,686) and East Anglia (£94,933).
Homeowners in the North East and Yorkshire had the least amount of equity available, with £53,546 and £64,830 per household respectively. This could be attributed to higher levels of home ownership in the regions.
Alice Watson, head of marketing 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.”
