New research conducted by financial experts at Canada Life UK has shown a spike in available equity.
The report’s findings revealed that in the third quarter of 2020, there was close to £600 billion worth of equity readily available in UK homes that could potentially be released. This increase marks a climb of approximately £100 billion from the second quarter of the year.
The statistics, founded on the most recent Halifax Regional House Price Index, indicate that the total sum of housing equity accessible by property owners aged above 55 stands presently at an estimated figure of £591 billion.
The report also indicates that a rise in loan-to-value products and an incremental hike in property prices may be attributed to this increase in equity. Due to its diverse quality, equity release can assist homeowners in meeting a wide range of changing needs, making it both a firm and flexible solution when required.
In the UK’s South East, where houses command higher prices, the region has the highest amount of accessible equity, standing at around £123 billion. Close behind is London, with the UK capital’s potential equity standing at £114 billion. The South West is in third place, with £62 billion worth of available equity for homeowners.
At the other end of the spectrum, the analysis uncovered that those over the age of 55 with a home based in the North of Scotland have the least equity available. Figures show accessible equity for such homes stands at only £43,042.
