The amount of equity available in UK homes has rose by £100bn in the third quarter of this year, as a result of rising house prices and higher LTVs. 

This analysis, by Canada Life, estimates that the total housing equity available to the over 55s now stands at £591bn. This is almost £1bn higher than the equity available in the second quarter of 2020.

Looking at the regional distribution, it is not surprising the highest levels of equity are in the South East. Canada Life estimates that across this region there is £123bn of untapped equity, equating to £107,966 per household.

This is closely followed by London, with £114bn (£148,909 per household), and the South West, where there is £62bn (£80,032 per household) in equity available to homeowners over the age of 55. 

In contrast, homeowners in the North and Scotland had the least amount of equity available, with just £43,042 and £48,063 per household respectively.

Canada Life, head of marketing, insurance Alice Watson says: “Property wealth continues to be an increasingly important source of later life funding, whether it’s used to finance home improvements, support family members or improve quality of life in retirement. 

“The substantial concentration of wealth in UK property means equity release could play an even greater role in retirement as the over-55s look for financial security in later life.”

To calculate this figure, Canada Life used an increase in LTVs across its own product range.