You are here: Home - Retirement - Retirement planning - News -

Over-65s property wealth hits new record high

Written by: Paloma Kubiak
Pensioners earned £3,500 a month from their homes in the past three months, taking property wealth owned by over-65s to a new record high of £1.01trn.

More than £47.2bn was added to the property wealth of over-65s in the three months to August, analysis from Key Retirement reveals.

Its Pensioner Property Equity Index showed that pensioners who had paid off their mortgages, added an average of £10,600 to the property value as the market recovered across the regions.

Since Key Retirement started analysing the data in 2010, retirees have seen property value growth of 41% or £321bn. This equates to around £68,500 on average for each homeowner and it suggests owning a home has been worth around £9,800 a year for retirees.

Regionally, London homeowners have benefited the most, making nearly £17,000 and pensioners living in East Anglia, Scotland, the South West and the North East also saw double-digit gains.

Key Retirement said the strength of the housing market means property wealth is making a major contribution to the standards of living for retirees as the equity release market expands. The average equity release customer is cashing in £70,625 of property wealth, while in London the figure’s much higher at £114,000 while in the South East, it’s £82,000.

The table below shows the change in property values across the UK:


Dean Mirfin, chief product officer at Key Retirement, said: “The strength of the housing market over the three months has significantly boosted property wealth for pensioners making as much as £3,500 a month.

“Prices may not continue to grow as fast but pensioners who have paid off mortgages can still rely on tax-free returns no matter what happens in the short and medium term.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Just how safe are contactless cards?

Contactless cards have soared in popularity but security is still a major concern for many consumers. We answe...

What happens to your credit score when you move overseas?

When you move abroad – whether permanently, or temporarily for an extended period – one thing that won’t be tr...

Govt will have to justify planned increase to state pension age

The government will have to justify proposed changes to raise the state pension age, which could see millennia...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Stock of the week: International Consolidated Airlines

Ian Forrest, investment research analyst at The Share Centre, picks British Airways owner, International Consolidated Airlines, as stock of the...