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

Pensioner property wealth increases despite housing market uncertainty

0
Written by:
22/04/2020
Total property wealth owned by the over-65s has reached £1.13trn, up £14.78bn in the past year, despite the impact of political and economic uncertainty on the housing market.

This is equivalent to a gain of £3,152 for the average retired homeowner who has paid off their mortgage, according to analysis by equity release adviser Key.

The long-term gains have been even more impressive. Since Key started analysing the mortgage-free property wealth of the over-65s in 2010, retired homeowners have benefited from growth of 45% – a total of nearly £354bn. This equates to gains of £75,000 for every homeowner in the past 10 years.

The biggest winners in the past year were the over-65s in Wales who have seen gains of £11,700 while retirees in the West Midlands (£8,165), East Midlands (£5,799) and the North West (£4,355) have also done better than average.

The only region to suffer substantial falls was East Anglia where retired homeowners are £3,267 worse off over the year. Homeowners in the South East saw marginal price falls of £149 over the year.

Will Hale, chief executive of Key, said: “Political and economic uncertainty hit the housing market last year but there were genuine signs of recovery towards the end of last year and retired homeowners who no longer have mortgages were big beneficiaries.

“Interestingly it was the over-65s in Wales who made the biggest gains – seeing the value of their property increase by nearly £1,000 a month – while those in East Anglia and the South East saw modest falls.

“While it is useful to be aware of market fluctuations what happens on a monthly basis is unlikely to alter the simple fact that millions of over-65s retain considerable property wealth which can transform their standard of living in retirement and enable them to address a wide range of financial issues.”

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.

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

New easy access best buy saver pays market-leading 2.85% 

Coventry Building Society has jumped to the top of the easy access savings accounts with a rate of 2.85%. Howe...
New easy access best buy saver pays market-leading 2.85% 

Last chance: The investment firms paying up to £1,200 to new customers

A host of investment platforms are offering bonuses to new and existing customers of up to £1,200 cashback. Bu...
Last chance: The investment firms paying up to £1,200 to new customers

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...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

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.

Money Tips of the Week