The total wealth held in these homes now totals £1.12trn, the Pensioner Property Equity Index revealed, up from £1.07trn the same time last year. 

However, this is a £9bn drop from its peak of £1.13trn recorded in the first quarter of 2020. 

Homeowners in London have the highest value of equity tied up in their homes as in the last 12 months this has grown by £25,994. The combined increase in home equity value in this region is £9.51bn. 

Pensioners in the South West follow with gains of £9,630 over the year, and over-65s in the South East have seen a £7,653 growth in equity.  

The only region to see property wealth decrease for over-65s was the West Midlands where losses were £235 over the year.  

The South East and London account for more than a third of all property wealth held by the over-65s while the South West and East Anglia account for more than a quarter.  

Will Hale, CEO at Key said: “The property market has suffered along with the rest of the economy during the coronavirus crisis and effectively shut down for months.

“However, property values seem to have remained relatively buoyant and with the current stamp duty exemption, we are likely to see continued interest from buyers.  

“Against this backdrop, we find millions of over-65s who have repaid their mortgages and are sitting on considerable unencumbered property wealth but may find that their retirement funds are not quite as healthy as they hoped.”  

“The equity release market has seen a slowdown as people take their time to decide how best to use their wealth in retirement but the number of customers looking to explore their options remains high demonstrating the ever-increasing need for expert advice in this area,” he added.