Sadna Zaman, Proposition Development Manager at Canada Life Home Finance, comments on the amount of equity release available to homeowners aged over 55 in England, Scotland and Wales.

The total amount of housing equity available to homeowners aged over 55 now stands at an estimated £622bn, according to Canada Life’s latest property value tracker. 

The average price of a property in the South East is currently £385,751, creating £118bn of potential equity and making it the highest value region in the UK.

Sadna Zaman, Proposition Development Manager, Canada Life Home Finance said:

Equity release can be a powerful tool to unlock the wealth tied up in your home and improve your retirement lifestyle. Despite the various economic headwinds and general uncertainty over the past year, property prices have remained firm, and even edged up in some areas. This resilience in the property market continues to create significant housing equity which can be released by homeowners looking to improve their retirement prospects. 

The latest FCA retirement income data just released shows the most common withdrawal rate for pensions for pot values up to £250,000 is 8%. People may be deliberately depleting their pensions as part of well-informed financial plans, but it may well be that some will be left wondering where their pensions have evaporated too in due course. While I certainly wouldn’t want to see equity release seen as a purchase of last resort, the product will continue to remain a key part of later life planning.

For older homeowners looking to free up cash from their homes, equity release can be used to meet their evolving needs in later life, whether that be to boost income, pay for the cost of care or make home improvements. Releasing equity remains a significant financial decision, but it will continue to play a vital role in retirement planning. Equity release can offer flexible ways to meet individual customer requirements.

Full press release: Potential equity release stands at £622bn

✉️ Paul Keeble, Canada Life, 07833 085387 / paul.keeble@canadalife.co.uk