Retired homeowners have gained £45.7bn in property wealth in the past year, despite housing market worries, according to analysis from independent equity release adviser Key.
The total property wealth owned by over 65s who have paid off their mortgages is nearing a record high of more than £1.1trn, with the average homeowner making approximately £812 a month since May last year, revealed Key’s Pensioner Property Equity Index.
The index found that over 65 in the East Midlands have gained the most, as their property wealth hiked by almost £1,170 a month. However, pensioners in the West Midlands (£1,002), Scotland (£989) and East Anglia (£973) have all seen significant gains, with none of the areas recording a fall in property prices.
Key reported that, since the group started analysing pensioners housing wealth in 2010, retired homeowners have seen their property wealth increase by £320bn (41%).
Commenting on the findings, Key chief product officer Dean Mirfin said: “Retired homeowners continue to see the benefits of property investment with average gains of £9,741 in the past year. Whatever the short-term changes in house prices, many over-65s have considerable property wealth which can make a huge contribution not only to their standard of living in retirement but also the financial wellbeing of family members.
“We are seeing an increasing number of customers choosing to gift some or all of the proceeds of equity release to help loved ones in a variety of ways, for some this is helping children or grandchildren take their first step on the housing ladder, for others to pay for expenses such as weddings. In many cases though it is just to help them with money at a time when they need it most. Equity release is increasingly benefitting the whole family.”
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