Unlocking Wealth in the Capital

For many London homeowners, property is more than just a place to live — it’s become their most valuable financial asset. And now, with record house prices and a broader range of equity release products than ever before, more people over 55 are choosing to access their home’s hidden value without having to sell up or downsize.

So, what’s driving the growing popularity of equity release in the capital? Let’s take a closer look at what’s changed, what’s possible, and why now might be the right time for many to explore their options.

If you’ve owned a home in London for any length of time, you’ve likely watched its value rise dramatically. In fact, over the past decade, the average property in the capital has increased in value by more than £230,000 — nearly doubling in some boroughs.

That surge in value means that, for many homeowners, there’s a significant amount of equity locked away — wealth that could be used to support retirement, clear debts, help family, or simply improve quality of life.

This kind of long-term capital growth has put London at the centre of the UK’s equity release boom. In the last five years alone, the number of people unlocking value from their London homes through equity release has grown by 20%.

Equity release allows homeowners aged 55 and over to unlock some of the money tied up in their home, without having to move out or make regular repayments.

The most common type of equity release is a lifetime mortgage. It lets you access a portion of your home’s value as tax-free cash, while continuing to live in the property. There are no mandatory monthly repayments, and the loan (plus interest) is repaid only when you pass away or move into long-term care.

And because London properties tend to be worth more, they often allow homeowners to access larger sums compared to the UK average — all without leaving the city or giving up the home they’ve built their lives in.

To put things into perspective, the average London home increased in value by £233,377 between 2012 and 2022. That’s a growth of 77%, outpacing the UK average and giving many homeowners a far larger equity cushion than they realise.

Here’s what that could mean in practice. A 71-year-old London homeowner in 2022 might have been able to unlock around £267,000 through equity release — a six-figure sum, entirely tax-free, without selling the home. That’s over £116,000 more than they would have been able to access just ten years earlier.

And according to research from Canada Life, the collective potential equity available to homeowners in the capital tops £146 billion — that’s an average of £191,000 per property.

London and the South of England now account for more than 40% of all new equity release plans, making the region the country’s clear leader in uptake. That’s no surprise when you consider the combination of high property values and strong demand for financial flexibility in later life.

Between 2017 and 2021, the number of equity release plans taken out in London grew by 20%, showing just how widespread — and trusted — these plans have become.

There’s been a lot of speculation about a potential drop in house prices — particularly in light of inflation, interest rate changes, and a cooling property market.

But even with short-term fluctuations, the long-term growth in London property values remains significant. Most homeowners are still sitting on far more equity than they were a decade ago.

In fact, limited housing supply in the capital may continue to prop up prices. A 2022 London housing report revealed a slowdown in large-scale building projects and a rise in completions, suggesting that demand could continue to outpace supply — a factor that tends to stabilise or even raise house prices.

What’s also helping to drive interest is the sheer flexibility of modern plans. Today’s equity release products are nothing like those of decades past. New features mean plans can be tailored to your needs, including:

• The ability to ring-fence a portion of your property for inheritance
• Options for voluntary repayments, allowing you to manage or reduce the final cost
• Interest-only plans, where the loan balance doesn’t increase over time
• Access to enhanced terms if you have certain health conditions
• The option to release equity from second homes or buy-to-let properties

With more than hundreds of plans now on the market — many designed for flexibility and future changes — equity release has become a much more adaptable tool for later-life planning.

Of course, equity release isn’t the only way to access money in retirement. Some homeowners consider downsizing, but for lifelong Londoners, that’s not always an attractive option. Selling the family home can feel like too much of a sacrifice — especially when it means leaving the neighbourhood or community you’ve built a life in.

Remortgaging is another possibility, but it typically comes with regular repayments — something that doesn’t always suit those with a fixed retirement income.

That’s where equity release can offer a compelling middle ground: you stay in your home, unlock a portion of its value as cash, and retain ownership — all without the pressure of monthly repayments.

If you’re over 55 and own a home in London, equity release could be an option worth exploring — especially if you want to turn property wealth into something more flexible, useful, and immediate.

The amount you can release will depend on your age, your health, and the value of your property. Generally, you can unlock between 20% and 60% of your home’s value. The older you are, the more you’re likely to be offered.

A qualified adviser can help you find out exactly what’s available to you and explain the full picture — from interest rates and repayment options to inheritance planning and product comparisons.

With soaring house prices, greater product flexibility, and a highly regulated marketplace, London homeowners are uniquely positioned to benefit from equity release.

Whether you’re looking to supplement your income, support your family, or enjoy more freedom in retirement, equity release could offer a smart way to make your property wealth work for you — while staying exactly where you are.

As always, getting tailored advice is key. But if you’re ready to explore the possibilities, there’s never been a better time to see what your London home could unlock.