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Potential equity held by older homeowners valued at £624bn

  • 26/01/2023
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Potential equity held by older homeowners valued at £624bn
The amount of potential equity held by homeowners in the UK aged 55 and over was valued at £624bn in Q4 2022, data has shown.

According to Canada Life and based on the Halifax house price index, older homeowners in the South East have the highest value of equity available at £121bn.  

The average property price in the South East stood at £395,000 in Q4. This was followed by London, where the average property price of £541,000 created £112bn of potential equity. 

Homeowners in the North East have the lowest amount at £15.9bn. 

Londoners have the highest amount of equity per household at an average of £146,100 per homeowner. Again, homeowners in the North East have the lowest amount per household, averaging £45,900 per homeowner. 


Falling house prices reducing equity 

The amount of potential equity available declined by £200bn when compared to Q2 2022 as house prices fell over the year. 

Prices fell across all regions in Q4, with Wales and London seeing the biggest reductions of 3.1 per cent and 2.3 per cent respectively. 

Alice Watson, head of marketing communications at 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.” 

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