Older homeowners see property values jump £10k in 2022
The total value of homes owned by people aged 65 and over has reached £2.95trn so far this year, adding an extra £10,121 to the price of each property on average.
Figures from later life mortgage adviser Key showed this was a £101.5trn annual uplift in house prices so far, as property values surged month on month.
Older homeowners in London have seen the values of their homes rise by £16,000 with properties in the capital owned by this age bracket worth £499.18bn.
Londoners are followed by homeowners in the South West, where an average of £15,950 has been added to the value of their houses. In this region, homes owned outright by those aged 65 and over are estimated to have a total value of £337.95bn.
Those in East Anglia and the West Midlands have also seen notable gains of £11,945 and £11,353 respectively.
Older homeowners should seek advice
Will Hale, CEO at Key, said the housing market had remained buoyant despite economic uncertainty giving older homeowners “substantial equity” in the face of rising interest rates and a cost-of-living squeeze.
He added: “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.”