The amount of equity available for release in UK homes topped £600bn for the first time, according to data from Canada Life.

The total amount of housing equity available to homeowners over 55 stands at an estimated £600.5bn in the final quarter of 2020, up £15bn on the previous quarter.

Higher house prices across the South West, South East and London are behind this surge in available equity, based on data from the latest Halifax quarterly regional house price index.

Average property price in London hit£519,000 in the period, creating £117bn of potential equity for the region. or £153,199 per household. This is the largest equity release figure in the UK.

The capital was closely followed by the South East which now has £116bn of potential equity, or £102,492 per household.

Property prices in the South West and in Wales have also witnessed the largest percentage growth in house prices in the final quarter of last year, both growing by 3.6 per cent.

The South West now has just under £60bn of equity available, or £76,932 per household.

In Wales, there is over £20 billion of potential equity release available, or £53,128 per household.

Homeowners in the North East and Scotland had the least amount of equity available, with £43,773 and £52,019 per household respectively.

Canada Life head of marketing, insurance Alice Watson says: “The world is changing around us and many homeowners are seeing an increasing strain on their personal finances.”

She adds: “In these cases, property wealth may serve as an important source of later life funding. The diverse nature of equity release products mean that they can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility.”