20 May Equity created due to rise in house process
During the first quarter of 2022, almost £800bn of equity was available for release in UK homes. This represents an increase of £19bn in three months and is the first time that it has exceeded this milestone, according to data from the quarterly regional house price index by Halifax.
Analysed by Canada Life, the data found an estimated £785.4bn is now available to homeowners aged 55 and over via their housing equity.
- The average price of a property in the South-East is £385,000 – this creates £153.5bn of potential equity and also makes it the highest value region in the UK. Homeowners could release as much as £135k
- In London, the average house price is £534,000 which creates £143.1bn of potential total equity. Homeowners could release as much as £187k
- In the East Midlands, property prices rose by almost 4% – the biggest jump in the UK. This leads to around £50bn in available equity which equates to around £82k in homeowner equity release.
- Houses in Wales and Yorkshire have the least amount of equity available, with £55.8k and £67.2k available on average.
Alice Watson from Canada Life Insurance Head of Marketing said:
“Everyone is noticing the increasing cost of living across the UK and people are feeling the pressure of rising inflation. Our latest release shows the sums that homeowners could expect to receive if they explored some of the value locked up in their property. With almost £800bn available across the UK, the collective pot is breaking new records every quarter.”
Releasing Equity is a great way to free up some cash for a number of different purposes. Home improvements, expensive purchases, helping family members to get onto the property ladder – the list goes on.
The team at Best 4U have a wealth of knowledge when it comes to releasing equity whether that be through a standard mortgage or an Equity Release/lifetime mortgage and could help you to make your dreams come true. Get in touch with a member of our friendly team today!