Over-65s have seen their property wealth increase by more than £6,000 each on average in the past year, despite the housing market going into lockdown, according to new analysis from Key

The equity release adviser revealed that the total property wealth owned by over-65s who have paid off mortgages is valued at £1.12trn, having increased by £28.30bn in the last 12 months. Data showed this is equivalent to a gain of £6,032 for homeowners.
 
Key’s analysis also showed the total value of property owned by over-65s peaked at £1.13trn at the start of 2020 and has since fallen by more than £9bn over the past quarter. The adviser suggested that older homeowners have still benefited from strong year-on-year increases, however.
 
Since Key started analysing the mortgage-free property wealth of the over-65s in 2010, homeowners have seen growth of 45% – a total of more than £344bn – which is equivalent to £73,400 per household in the past decade.

“The property market has suffered along with the rest of the economy during the coronavirus crisis and effectively shut down for months,” said Key CEO, Will Hale.

“Coupled with the ongoing political and economic uncertainty of the past few years, it has gone through a turbulent time.  However, property values seem to have remained relatively buoyant and with the current stamp duty exemption, we are likely to see continued interest from buyers.
 
“Against this backdrop, we find millions of over-65s who have repaid their mortgages and are sitting on considerable unencumbered property wealth but may find that their retirement funds are not quite as healthy as they hoped.”
 
Key’s data also showed that the biggest gains in the past year have come in London where over-65s homeowners are nearly £26,000 better off over the year, while pensioners in the South West have gained £9,600, and over-65s in the South East are more than £7,600 ahead.
 
The South East and London account for more than a third of all property wealth held by the over-65s, while the South West and East Anglia account for more than a quarter.

The analysis found that the only region to see property wealth decrease for over-65s was the West Midlands, although losses were marginal at £235 over the year.

Hale added: “It is vital to get specialist advice and consider all assets when it comes to planning your finances through retirement, as making smart choices can significantly improve your standard of living throughout later life.
 
“The equity release market has seen a slowdown as people take their time to decide how best to use their wealth in retirement but the number of customers looking to explore their options remains high, demonstrating the ever-increasing need for expert advice in this area.”

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