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Equity available in UK homes reaches new high of £766bn

  • All GB regions see growth as available equity grows by £25.8bn in Q4
  • The South East has the most available equity by region (£148.9bn), followed by London (£140.5bn)
  • Wales sees largest quarterly house price growth of 5.8%

 

Over £760 billion of equity was available for release in UK homes in Q4 2021, an increase of over £25bn in three months and the first time it has exceeded this milestone. The figures, based on the latest Halifax quarterly regional house price index and analysed by Canada Life, reveal that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £766.3 billion1.

 

The average price of a property in the South East is now £374k, creating £148.9bn of potential equity for the region, the largest available equity by region in the UK. This was closely followed by London where the average house price is now £525k with £140.5bn of total potential equity. Property prices in Wales, the North West and South West saw the largest growth in Q4, growing by 5.8%, 5.0% and 4.2% respectively. Wales now has £29.9bn of potential equity available, or almost £72k per household. In the North West there is now almost £66bn available, equating to £74k per household and in the South West £77.8bn of available equity leads to £100k available to release per household.

 

Londoners have the highest amount of equity available per household with £183k available on average. This is followed by the South East (£131k) and East Anglia (£111k). Homeowners in the North East and Yorkshire have the least amount of equity available per household with £55.8k and £67.2k available on average.

 

Alice Watson, Head of Marketing, Insurance, Canada Life said: “Q4 has shown incredible growth in property prices across the country. As a result homeowners have greater opportunities to support their retirement planning and aspirations with their growing household equity.

 

“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.”

 

Full regional breakdown of available equity:

 

 

Region

 

Potential equity release value available

Potential equity release value per household2

Scotland

£46.8 bn

£67.5k

North East

£19.3 bn

£55.9k

Yorkshire and The Humber

£44.7 bn

£67.3k

North West

£66.0 bn

£74.2k

East Midlands

£47.5 bn

£78.8k

West Midlands

£57.5 bn

£82.0k

Wales

£30.0 bn

£72.0k

East Anglia

£87.1 bn

£111.8k

South East

£149.0 bn

£131.1k

South West

£77.8 bn

£100.7k

London

£140.6 bn

£183.9k

Q4 Total

£766.3 bn

£1.025m

 

 

 

  1. Source: Property values listed are based on Halifax’s quarterly house price index. The potential equity release value has been calculated using the maximum loan to value (as of October 2021) for a 70 year old for Canada Life’s Capital Select Super Lite product based on the average regional house price and ONS population statistics. This has then been weighted based on the English Housing Survey’s property ownership figures for those aged 55 or over - this was then applied to each region to calculate the proportion of properties owned by those aged 55 or over.
  2. Numbers have been rounded - please ask for a full breakdown