The financial services firm says the amount of housing equity available to homeowners aged over 55 now stands at an estimated £729.8bn in the second quarter of the year, a jump of £80bn from the previous quarter.
The data comes as house prices lifted 7.6% at an annual rate in July pushing the average house price in the UK at £261,221, according to the latest index from Halifax earlier this month.
Prices have been spurred by the stamp duty holiday prompted by the pandemic and a shortfall of houses coming to market.
The average price of a property in the South East is now £353,000 creating £140bn of potential equity for the region, the largest available equity by region in Britain, says Canada Life.
This was closely followed by London which now has £136bn of potential equity.
Scotland and London saw the smallest growth in house prices over the quarter edging up 1.2% and 1.4%, respectively.
But despite this, London still enjoys the highest levels of average equity available at £161,276 per household, followed by the South East, with £110,686, and East Anglia at £94,933.
Property prices in Yorkshire, the South West and the North West also grew significantly over the period, lifting by 3.9%, 3.7% and 3.4%, respectively.
Yorkshire now has over £43bn of potential equity available, or just under £65,000 per household.
Available equity for release jumps to just under £73bn for the South West, or just over £94,000 per household.
In the North West, there is just under £63bn available, or £70,000 per household.
Homeowners in the North East and Yorkshire had the least amount of equity available, with £53,546 and £64,830 per household, respectively.
“This could be attributed to higher levels of homeownership in the regions,” says the report.
Canada Life head of marketing, insurance Alice Watson says: “House prices have risen dramatically over the last year which has naturally led to more equity being available across the country.
“As a result, property wealth is increasingly being used as another element of retirement income, alongside existing savings.
“The diverse nature of equity release products mean that they can be used to meet a range of evolving needs.”
Earlier this week, Canada Life launched a new equity release product range called Lifestyle Select Options.
It said these options allow repayment contributions of up to 10% of the initial loan amount each year, with any contributions being exempt from early repayment charges.