Older homeowners in the South East have the highest value of equity available at £121bn, according to Canada Life analysis of the Halifax house price index.

It gave the average property price in the South East as £395,000 in Q4. This was followed by London, where the average property price of £541,000 created £112bn of potential equity. 

Homeowners in the North East have the lowest amount at £15.9bn, and they also have the lowest amount per household, averaging £45,900 per homeowner. 

Meanwhile Londoners have the highest amount of equity per household at an average of £146,100 per homeowner.  

Falling house prices reduces equity 

The amount of potential equity available declined by £200bn when compared to Q2 2022 as house prices fell over the year. 

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Prices fell across all regions in Q4, with Wales and London seeing the biggest reductions of 3.1% and 2.3% respectively. 

Alice Watson, head of marketing communications at Canada Life, said: “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.  

“In today’s uncertain environment, equity release provides certainty and continues to be a popular choice for those wishing to free up cash from their homes to meet their evolving needs in later life.

“While equity release remains a significant financial decision, it has an increasingly valuable role to play in helping today’s homeowners live the retirement they want. With the right advice, equity release has proven it can help the nation’s homeowners access their property wealth in a flexible and safe way.” 

Related: A back to basics guide on equity release