The number of over-45s who own a property outright has fallen in the last six years, new research from Aviva has highlighted.

According to the findings, almost a quarter (23%) of those aged between 45 and 54 owned their property outright in 2016, but this figure has fallen to 16% in 2022. For 55 to 64 year olds, the respective numbers were 48% and 45%, which Aviva said indicates that mortgages are being paid off later than they were six years ago.

Aviva’s research looked into levels of spending, saving and attitudes towards funding retirement in the over-45s, following a similar survey run in 2016. The study also looked at property and whether the market has affected people’s attitudes towards their property wealth.

As people get older, the research showed that more people own outright – 13% of 65 to 74 year olds owned a property with a mortgage in 2016, compared with 9% in this age group this year.

Aviva’s findings also highlighted that the length of tenure in the same property has remained constant over the last six years, at just under 20 years, compared with 21 in 2016.

Those who own outright have typically been in their property longer – 22 years, compared with 16 for people who own with a mortgage – so the mortgage-free have also benefitted from an additional six years of property price rises, building up the equity in their home.

Taking into account the average outstanding mortgage still owing, Avivia’s figures showed that the amount of equity people have in their property is typically just under £195,000. This compares with the average held in savings and investments, of £52,000 and Avvia said it shows the importance of considering all sources of wealth when planning later life finances.

“In the years since we last carried out this research, significant events have impacted the way people feel about the economy, their futures and their retirement plans,” said MD Aviva Equity Release, Matt McGill. “Understandably, a much larger number of people are now citing worries about the economy as their major concern in retirement.

“Despite all this, the housing market in the UK has been on a steady upward trend since many current retirees bought the home they still live in. But less than half (42%) of the people we surveyed said that their home was worth more than their savings and investments, yet the facts show that people’s property equity is worth almost four times as much as their savings.

“It’s likely that people have accumulated more wealth in their property assets than they realise, and looking at ways of utilising this in planning for retirement could have a significant impact for them. It’s an important factor to consider when looking to plan for a comfortable retirement.”

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