More than £600bn of equity was available for release in UK homes in Q4 2020, the first time it has exceeded this milestone, analysis from Canada Life reveals.
This is an increase of £15bn based on the previous quarter.
The figures, based on the latest Halifax regional house price index, reveal that the total amount of housing equity available to homeowners aged over-55 now stands at an estimated £600.5bn.
Higher house prices across the South West, South East and London have driven this surge in potential available equity.
A property in London is now reaching an average price of £519,000, creating £117bn of potential equity for the region, the largest available in the UK.
This was closely followed by the South East which now has £116bn of potential equity.
Property prices in the South West and in Wales have also witnessed the largest percentage growth in house prices in Q4, growing by 3.6%.
The South West now has almost £60bn of equity available, while in Wales there is over £20bn of potential equity release available.
Homeowners in the North East and Scotland had the least amount of equity available, with £43,773 and £52,019 per household respectively.
Alice Watson, head of marketing, insurance at Canada Life, said: “The world is changing around us and many homeowners are seeing an increasing strain on their personal finances.
“In these cases, property wealth may serve as an important source of later life funding.
“The diverse nature of equity release products mean that they can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility.
“The substantial concentration of wealth in UK property and our increasingly competitive product LTVs means there’s now more equity available to release for those looking to access money from their home.
“As a result, equity release could play an even greater role in retirement as the over-55s look for financial security in later life.”