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Potential UK equity release stands at £624bn

  • Q4 data reveals the amount of equity available to release across England, Scotland and Wales stands at £624 bn
  • The South East has the highest value of equity available (£121bn) while homeowners in London have the greatest amount of equity available per household (£146k)
  • Homes in the Wales have seen the greatest decrease in value (-3.1%)

Over £600 billion of equity was available for release in UK homes in Q4 2022, a decrease of nearly £200 billion since Q2 2022. 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 £624 billion1.

The average price of a property in the South East is now £395,000, creating £121 billion 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 £541,000, creating £112 billion of total potential equity. Homeowners in these regions can now expect to be able to release around £107,000 and £146,000 respectively. On the other hand, homeowners in the North East and Scotland have the least amount of equity available per household, with £45,900 and £54,000 on average.

Property prices fell across all regions during Q4 2022, with Wales and London seeing the biggest drops of (-3.1%) and (-2.3%) respectively.

Alice Watson, Head of Marketing Communications, Canada Life said:

“The significant change in the amount of equity available to release can in part be attributed to the challenging market conditions and slowing of the UK housing market, while some lenders have also reduced the loan-to-values available.

“In today’s uncertain environment, equity release provides certainty and continues to be a popular choice for those wishing to free up cash from their homes to meet their evolving needs in later life. While equity release remains a significant financial decision, it has an increasingly valuable role to play in helping today’s homeowners live the retirement they want. With the right advice, equity release has proven it can help the nation’s homeowners access their property wealth in a flexible and safe way.”

Full regional breakdown of available equity:

Region

 

Potential equity release value available

Potential equity release value per household2

Scotland

£37.4 bn

£54.0k

North East

£15.9 bn

£45.9k

Yorkshire and The Humber

£36.9 bn

£55.5k

North West

£54.4 bn

£61.2k

East Midlands

£39.4 bn

£65.3k

West Midlands

£47.5 bn

£67.8k

Wales

£24.5 bn

£58.7k

East Anglia

£71.0 bn

£91.0k

South East

£121.3 bn

£106.7k

South West

£63.6 bn

£82.3k

London

£111.7 bn

£146.1k

Q2 Total

£623.5 bn

£834.6k

 

ENDS

Enquiries:

Press enquiries should be directed to:

Amelia Graham, Vested, 07393 477057, canadalife@fullyvested.com

Paul Keeble, Canada Life, 07833 085387, Paul.Keeble@canadalife.co.uk

Notes to editors:

  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

About Canada Life:

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.  Great-West Lifeco has over 30 million customers worldwide and £1.341 trillion assets under administration (as at 31.12.21).

Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Platform Limited, trading as Canada Life, is a subsidiary of The Canada Life Group (UK) Limited, and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 8395855. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.

Stonehaven UK Limited, trading as Canada Life, is a subsidiary of The Canada Life Group (U.K.) Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered number: 05487702. Registered office: Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA.

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