Over £600bn of equity was available for release in UK homes in the last quarter of 2022, the latest data from Canada Life shows. 

This represents a decrease of almost £200bn since the second quarter of 2022. 

Based on the latest Halifax quarterly regional house price index, the figures reveal that the total amount of housing equity available to homeowners over 55 now stands at an estimated £624bn.

The average price of a property in the South East is now £395,000, creating £121bn of potential equity and making it the highest-value region in the UK. 

London followed closely where the average house price is now £541,000, creating £112bn of total potential equity. 

Homeowners in these regions can now expect to be able to release around £107,000 and £146,000 respectively. 

Meanwhile, homeowners in the North East and Scotland have the least amount of equity available per household, with £45,900 and £54,000 on average. 

Property prices fell across all regions during the fourth quarter of 2022, with Wales and London seeing the biggest drops of -3.1% and -2.3% respectively. 

Canada Life head of marketing communications Alice Watson says: “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.”

Earlier today, Legal & General Home Finance revealed that lifetime mortgage customers continue to use their property’s value to help financially support their families and make changes to their homes.

The latest data shows that in 11% of drawdowns, Legal & General customers use the value hidden in their homes to help family members meet financial goals.