Over-65s have seen their property wealth increase by more than £10,000 on average this year, new analysis from Key has shown.

The equity release adviser noted this is despite recent signs of cooling in the equity release market as the cost of living crisis starts to bite.
 
So far this year, Key’s figures show that the total property wealth owned outright by over-65s has increased by £101.5bn to almost £3trn. This is worth an average £10,121 for each homeowner who has paid off their mortgage.
 
Total property wealth now stands at £2.95trn, Key revealed, with older homeowners in all parts of the UK benefiting. The biggest gains per household this year were in London, where homeowners are more than £16,000 better off, while in the South West average gains are just behind at £15,950.
 
As a region, the South West saw the biggest total gain at £16.7bn ahead of the South East and London, where gains have reached £15.5bn and £15.3bn respectively.

“In the wake of the pandemic and stamp duty Holiday, the housing market has been buoyant as more people looked to get their first foot on the property ladder or move property,” commented CEO at Key, Will Hale. “While there are signs that it is cooling in the face of rising interest rates and the cost of living squeeze, older homeowners are likely to have substantial equity tied up in their homes.

“Choosing to use housing equity is a decision which needs to work for over-65s now and in the future, but people should know that there are options available to help them meet increasingly unsustainable utility and food bills if they are living in a substantial asset.

“Those on low to modest or fixed income have been particularly hard hit with the recent price rises and with pension incomes often not keeping pace with inflation, many older customers are really feeling the pinch. With equity release rates increasing and uncertainty around property prices, now is a good time for older homeowners to seek specialist advice and consider all their options.

“With the rising cost of living, it is unsurprising that many people are looking across all their assets to see how they can best meet day-to-day living costs. In this context, housing equity, and therefore equity release products, has an important role to play in helping older customers manage their finances and achieve their needs and wants in retirement.”

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