Pensioner property wealth in the UK reaches a new high
Retired home owners in the UK now own property worth £807 billion with their total property wealth increasing by more than £6.3 billion in the past three months, the equivalent of around £1,340 each.
New research from over 55s financial specialist Key Retirement Solutions says that their total property wealth is now at its highest level since the firm started monitoring the housing wealth of the over 65s in March 2010.
Its Pensioner Property Equity Index shows over-65 homeowners now own property wealth of £807.249 billion outright as house prices across most of the UK rose and the growth in property prices is helping to drive the equity release market which enables home owners to release money from their houses.
Key Retirement Solutions figures show £339.8 million was released in the first three months of this year with the average customer taking more than £61,230 from their home.
Retired home owners in London were the biggest winners gaining nearly £10,700 on average each in the past three months while retired homeowners in Eastern England are more than £4,290 better off and pensioners in the South West are £2,283 better off.
But there were sharp falls in some areas. Over 65 home owners in Wales saw their average property wealth fall by nearly £5,000 in the three months while Scottish pensioners lost nearly £3,900. Retired homeowners in the North West lost £966.
The figures also show more than 36.7% of pensioner property equity is owned by over 65s in London and the South East. In London over 65s own property without any mortgages worth £151.7 billion while in the South East pensioners own £145 billion of property outright. More than 70% of pensioner property wealth is concentrated in London, the South East, the South West, the East of England and the North West.
‘Pensioner property wealth is at a new record high of £807 billion as the housing market continues to grow, and average gains of more than £1,346 in just three months highlights that property wealth should be a major part of retirement income planning,’ said Dean Mirfin, group director at Key Retirement Solutions.
‘Even home owners in areas where prices have fallen still have considerable property wealth considering they own their homes outright and will have seen strong gains,’ he added.