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Pensioners gain £13 billion on property value

Fiona Murphy
Written By:
Fiona Murphy
Posted:
Updated:
29/08/2012

Retired homeowners gained a total of £13.66 billion on their property value in the past three months, research has found.

Figures from Key Retirement Solutions, an equity release specialist, shows the over 65s are sitting on £756.7 billion of property wealth and gained an average of £2,956 each as the market stabilised.

Dean Mirfin, group director at Key Retirement Solutions said: “That masks big differences with pensioners in London, Scotland and Wales seeing major gains while other regions are standing still or seeing losses.”

Pensioners in London fared the best, with average gains of £15,954. Over 65s in Scotland saw an increase of £12,720 and Welsh pensioners had gains of £5,811 on their property prices.

The biggest loss was in the East Midlands with over-65s losing £713 while pensioners in North West, the East of England, Yorkshire & Humberside and the North East also sustained small losses.

A third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £131.13 billion while in the South East pensioners own £123.35 billion of property without mortgage, the research found.

Meanwhile the latest Office of National Statistics figures reveal growth across all UK property prices of 2.3% compared to the same time last year.

Dean Mirfin, Group Director at Key Retirement Solutions said: “It is too early to talk about a housing market recovery but pensioners have on average seen gains of £2,956 in their property equity.

“But it remains the case that whatever happens in the housing market over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages on houses they may have bought more than 25 years ago.”