"Equity release could play an even greater role in retirement as the over-55s look for financial security in later life."
There was almost £600 billion of equity available for release in UK homes in Q3, an increase of £100 billion from Q2 this year, according to analysis from Canada Life.
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 £591 billion.
Canada Life has attributed the rise to an increase in LTVs across its product range and a marginal increase in house prices.
Higher house prices result in the South East having the highest amount of potential equity available, standing 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. In contrast, homeowners in the North and Scotland had the least amount of equity available, with just £43,042 and £48,063 per household respectively.
Alice Watson, head of marketing at Canada Life, said: “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.
“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.”