UK equity release value hits £811bn

5th August 2022

More than £800 billion of equity was available for release in UK homes in Q2 2022, an increase of over £25.6bn in three months and the first time it has exceeded this milestone according to the latest Halifax quarterly regional house price index and analysed by Canada Life.

The figures reveal that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £811 billion.

The average price of a property in the South East is now £396k, creating £157.6bn of potential equity and making it the highest value region in the UK. This was closely followed by London where the average house price is now £547k creating £146.3bn of total potential equity. Homeowners in these regions can now expect to be able to release around £138k and £191k respectively. Homeowners in the North East and Scotland have the least amount of equity available per household with £59.4k and £70.5k available on average.

Property prices rose by 4.8% in the North East, the biggest jump in the UK, while the smallest growth was seen in London (2.3%).

Alice Watson, Head of Marketing, Insurance, Canada Life said “Our latest house price research shows once again the value that equity release could bring to households up and down the country. Everyone is noticing the increasing cost of living across the UK and people are feeling the pinch cause by rising inflation. Our latest house price research shows the average sums that homeowners could expect to receive if they explored some of the value locked up in their property. With over £800bn available across the UK, the collective pot is breaking new records every quarter.”

“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 for or to provide for other family members at difficult times. With the right advice, equity release has proven it can help people to access their property wealth flexibly and safely.”

Region

 

Potential equity release value available

Potential equity release value per household2

Scotland

£48.8 bn

£70.5k

North East

£20.5 bn

£59.4k

Yorkshire and The Humber

£47.4 bn

£71.3k

North West

£70.0 bn

£78.7k

East Midlands

£51.0 bn

£84.7k

West Midlands

£60.7 bn

£86.5k

Wales

£32.0 bn

£76.7k

East Anglia

£93.2 bn

£119.5k

South East

£157.6 bn

£138.7k

South West

£83.3 bn

£107.8k

London

£146.3 bn

£191.5k

Q2 Total

£811.0 bn

£1.09m