The total amount of housing equity available to homeowners aged over 55 now stands at an estimated £616 billion.

The figures, based on the latest Halifax quarterly regional house price index and analysed by Canada Life, reveal that the amount of equity available has fallen from £624bn in Q4 2022.

The average price of a property in the South East is now £388,000, creating £119 billion of potential equity and making it the highest value region in the UK. This was closely followed by London where the average house price is now £537,000, creating £111 billion of total potential equity.

Homeowners in these regions can now expect to be able to release around £105,000 and £145,000 respectively. On the other hand, homeowners in the North East and Scotland have the least amount of equity available per household, with £45,000 and £54,000 on average.

Property prices fell across all regions during Q4 2022, with the South East and Wales seeing the biggest drops of (-1.8%) and (-1.6%) respectively.

Sadna Zaman, proposition development manager, Canada Life Home Finance, said: “While the amount of equity release available has fallen as a result of strong economic headwinds and the slowing of the UK housing market, in today’s challenging environment, equity release can provide both flexibility and certainty. 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 supplement their income, pay for the cost of care or make home improvements.

“Releasing equity remains a significant financial decision, however it has an increasingly valuable role to play in retirement planning for years to come. With the right advice, equity release can offer flexible ways to meet individual customer circumstances and will no doubt continue to adapt as their needs change over time.”