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

Pensioner property wealth tops £1 trillion

0
Written by:
13/02/2018
Property wealth owned by the over-65s has topped £1trn, up £37bn in the past year.

That is equivalent to a gain of more than £7,900 each in property wealth over the past 12 months, according to analysis from Key Retirement.

Key Retirement’s pensioner property equity index shows that since 2010, retired homeowners have seen growth of 41% – £321bn. This equates to £68,500 for every homeowner over 65.

Retirees in the South East and East Anglia have benefited most, with gains of more than £1,000 a month. The only region to see an average fall in the value of home equity over the year was London, where homeowners saw a drop of £5,700. However, older Londoners still own the most property equity.

But this group still owns an estimated total property equity of £176bn – second only to the South East where this figure is £213bn.

The results are likely to increase controversy over ‘intergenerational fairness’. Over the past 40 years, retired households’ real disposable incomes have risen by an average of 2.8% per year, compared to just 2.1% for non-retired households. Pension income and wealth has also increased exponentially. The net household wealth of the over-50s is around 5x that of those in their thirties

Dean Mirfin, chief product officer at Key Retirement, said: “Total property wealth of more than £1trn means pensioners who have paid off mortgages can rely on using their homes to generate tax-free returns no matter what happens in the short and medium term.

“The average homeowner is releasing through equity release the equivalent of the gains made since 2010 and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK.”

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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week