Menu
Save, make, understand money

Mortgages

Pensioners own property worth well over £750bn

Your Money
Written By:
Your Money
Posted:
Updated:
26/11/2012

Retired homeowners have total property wealth owned outright of £756.36bn, according to new research from equity release adviser Key Retirement Solutions.

However this is not the case everywhere, as homeowners across the country aged 65-plus lost a total of £368.9m in the past three months – equivalent to around £80 each – as the housing market stabilised.

But the national figure masked major gains in London where the average over-65 homeowner gained £4,326 in the past three months while in the East of England they were £1,786 better off and £1,232 better off in the South East.

Over-65 homeowners in London have seen average gains of around £21,000 this year with the East of England £3,350 up and the South East £3,930 ahead.

All other regions are either slightly down or marginally ahead.

Dean Mirfin, group director at Key Retirement Solutions, said: “The housing market has stabilised but there is a real regional divide with big gains in London, the East of England and the South East.

“The rest of the country has either seen marginal gains or relatively small losses this year.

“But 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 homes they may have bought more than 25 years ago.

“The equity release market is seeing strong growth in the number of plans sold and the money released as more pensioners opt for drawdown products.

“They enable customers to benefit from lower borrowing costs today, allowing for increased flexibility to access further funds over time as and when required.”