Home LoanMortgage UK equity release value tops £800bn for first time: Canada Life

UK equity release value tops £800bn for first time: Canada Life

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The amount of equity available for release in UK homes topped £800bn for the first time, with this value lifting by £25.6bn in the second quarter of the year, says Canada Life.

The total amount of housing equity available to homeowners aged over 55 now stands at an estimated record £811bn, as house prices continue to climb, says the later life lender basing its figures on the latest Halifax quarterly regional house price index.

House prices jumped by 13% on an annual basis in June, reported Halifax in its latest house price index earlier this month, putting the average UK house price at £294,845. This was the strongest annual growth rate seen since late 2004.

The average price of a property in the South East is now £396,000, creating £157.6bn of potential equity and making it the highest value region in the UK, followed by London where the average house price is now £547,000 creating £146.3bn of potential equity, says the later life lender.

Homeowners in these regions can now expect to be able to release around £138,000 and £191,000, respectively.

It adds that homeowners in the North East and Scotland have the least amount of equity available per household with £59,400 and £70,500 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, at 2.3%.

Canada Life head of marketing, insurance Alice Watson says: “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 caused 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.”

Finopulse

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Finopulse.
Publisher: Roger Baird

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