There is now £383bn worth of equity available within older homeowners’ properties due to house price rises across the UK according to Canada Life.
The figures, based on the latest Nationwide Building Society house price data, have seen a quarterly increase of over £1.5bn.
This comes as the average equity release rate fell below 5% for the first time in H1 2019 which enables more homeowners to unlock money stored in their home.
Alice Watson (pictured), head of marketing and communications at Canada Life Home Finance, said: “As the average UK house price has increased, there’s now more equity available to UK homeowners aged-55 and over.
“This lays a strong foundation to support increased demand for equity release, and with the first half of this year seeing an increase in the total number of customers, there are positive signs for the industry.
“Earlier this year, we reported that nearly one in five financial advisers believed house prices would rise by up to 5% in 2019 – and despite some naysayers, their positive prediction has been vindicated.
“With considerable equity available to homeowners aged 55 and over, it’s important that the industry does all it can to encourage more people to look at their wealth holistically and realise the role that their property wealth can play in their financial planning.”