This figure represents an increase of £100bn on Q2 2020.
Canada Life reduces product rates
Canada Life has attributed the rise to the marginal uplift in house prices and the increase in loan-to-values (LTVs).
The South East recorded the highest amount of potential equity available, standing at £123bn, or £107,966 on average per household.
In contrast, homeowners in the north of England and Scotland had the least amount of equity available, with just £43,042 and £48,063 per household, respectively.
Alice Watson, head of marketing, insurance at Canada Life, said: “Property wealth continues to be an increasingly important source of later life funding, whether it is used to finance home improvements, support family members or improve quality of life in retirement.
“The substantial concentration of wealth in UK property and our increasingly competitive product LTVs means there is 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.
“The diverse nature of equity release means that it can be used to meet a range of evolving needs, while offering a combination of certainty and flexibility to suit client’s individual circumstances.”